Chris Millikan Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines. Determine the size of the kanban for sub assemblies and the number of kanbans needed.
Setup cost = $30
Annual holding cost subassembly = $120 per subassembly
Daily production = 30 sub assemblies
Annual usage = 2,500 (50 weeks × 5 days each × daily usage of 10 sub assemblies)sub assemblies
Lead time = 6 days
Safety stock = 4 days' production of subassemblies.
Size of kanbans: ____________
Number of kanbans: ____________
Round your answers up to the nearest whole number; for example, round 11.2 to 12 .
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This posting contains solution to following problem on Kanban cards.