Daily Usage of a Part Is 20 in a Facility

question 49

Short Answer

Daily usage of a part is 20 in a facility that operates 250 days of the year. Setup cost is $15 and annualized carrying cost is $100 per unit. 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?

---

Definitions:

Fault Zone

A region of numerous, closely spaced faults where the Earth's crust has fractured and moved.

Unconformity

A gap in the geological record where rock layers have been eroded or never deposited, representing a period of non-deposition or erosion.

Energy Resource

Any natural or artificial substance or phenomenon that can be utilized to produce power, such as fossil fuels, solar, wind, or hydro power.

Oil And Gas

Natural resources that are extracted from the Earth and used primarily for energy and as raw materials in the production of chemicals.