Daily Usage of an Assembly Is 100 in a Facility

question 17

Essay

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 day's production.What is the optimum kanban size,and number of kanbans?

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Definitions:

Consolidation Worksheet

A tool used in the preparation of consolidated financial statements that helps in combining the financial information of a parent company and its subsidiaries.

Inventory Transfers

The process of moving inventory from one location to another within the same company, affecting stock levels but not the company's overall inventory.

Sold Merchandise

Refers to goods that have been transferred from a seller to a buyer in exchange for payment, recognized as sales revenue in accounting.

Outstanding Bonds

Outstanding bonds refer to bonds issued by an entity that are currently in circulation and have not yet been redeemed or matured.