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

question 147

Short Answer

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 $\frac { 1 } { 2 }$ day's production. What is the optimum kanban size, and number of kanbans?

---

Definitions:

Manufacturing Units

Facilities or factories where raw materials are transformed into finished products through the use of machinery, labor, and production processes.

Economies Of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Bottling Company

A company involved in the business of packaging beverages for distribution and sale.

Global Market

The international marketplace where goods, services, currencies, and information are exchanged across national boundaries.