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:

Input Signal Sources

The origin or device that produces input signals for processing, such as sensors or switches, feeding back information to a control system.

Operating Errors

Mistakes or malfunctions that occur during the functioning of a system or device.

Electrical Noise

Disturbances superimposed on a useful signal that can degrade the performance of electronic equipment.

Ground Loop Circuit

An unintentional electrical loop formed when two points in an electrical system that should have the same ground reference potential do not, often leading to interference.