Daily Usage of a Part Is 20 in a Facility

question 15

Essay

Daily usage of a part is 20 in a facility that operates 250 days of the year.Setup cost is $20 and annualized carrying cost is $210.Production of this part occurs at the rate of 50 per day when production of the part is underway.Lead time is 1 day;safety stock is 1/2 day's production.What is the optimum kanban size,and number of kanbans?

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