Daily Usage of a Product Is 10 Units

question 32

Essay

Daily usage of a product is 10 units. Since the plant operates 300 days per year, this leads to annual usage of 3000 units. Setup cost is $15 and annualized carrying cost is $20. Daily production of this product is 14 units. Lead time is nine days, and safety stock is two day's production. What is optimal kanban size? What is the optimal number of kanbans?

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Definitions:

Degrees Of Freedom

The number of independent values in a statistical calculation that can vary without violating any imposed restrictions.

Independent Variables

Independent Variables are variables in an experiment or model that are manipulated or categorized to determine their effect on dependent variables.

Data Points

Individual observations or measurements recorded during a study or experiment.

SSE

Sum of Squared Errors, a measure used in statistics to quantify the discrepancy between the observed and predicted values.