Weekly Usage of a Product Is 8 Units

question 29

Short Answer

Weekly usage of a product is 8 units. Since the plant operates 50 weeks per year, this leads to annual usage of 400 units. Setup cost is $40 and annualized carrying cost is $80. Weekly production of this product is 12 units. Lead time is four weeks, and safety stock is one week's production. What is optimal kanban size? What is the optimal number of kanbans?

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Definitions:

Original Organism

The first or earliest form of an organism from which others have evolved or derived.

Evolution

The process whereby multiple forms of life are thought to have arisen and diversified from ancient ancestors throughout the geological history of the planet.

Scientists

Individuals engaged in systematic investigation and study to acquire knowledge and understanding through observation, experiment, and theory development in various fields.

Percentage

A mathematical concept representing a number or ratio as a fraction of 100, used to express proportion, allocation, and statistical data.