Daily Usage of a Product Is 20 Units

question 30

Essay

Daily usage of a product is 20 units. Since the plant operates 250 days per year, this leads to annual usage of 5000 units. Setup cost is $100 and annualized carrying cost is $90. Daily production of this product is 75 units. Lead time is eleven days, and safety stock is six day's production. What is optimal kanban size? What is the optimal number of kanbans?

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Definitions:

Earned Value Management

A project management technique that integrates scope, cost, and schedule to assess project performance and progress.

Partial Completion

Refers to the stage in a project or task where some, but not all, components have been accomplished.

Detailed Costs

Breakdown of all individual expenses involved in a project including materials, labor, overheads, and any other costs.

High Complexity

Refers to situations, systems, or projects characterized by a high degree of multifaceted components, interactions, and intricate structures.