Pauline Found Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed.
Setup cost: $30
Annual holding cost: $125 per subassembly
Daily production: 40 subassemblies
Annual usage: 4,500 (50 weeks x 5 days each x daily usage of 18 subassemblies)
Lead time: 16 days
Safety stock: 2 days' production
Kanban container size = ?
Number of kanbans = ?
Answers: 1
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