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Daily Usage of an Assembly Is 100 in a Facility 12\frac { 1 } { 2 }

Question 147

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Daily usage of an assembly is 100 in a facility that operates 300 days of the year. Setup cost is $5 and annualized carrying cost is $160. Production of this assembly occurs at the rate of 400 per day when production of the assembly is underway. Lead time is 3 days; safety stock is 12\frac { 1 } { 2 } day's production. What is the optimum kanban size, and number of kanbans?

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