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:

Group Project

A collaborative assignment or task undertaken by a group of people, typically students, aiming to achieve a common objective.

Resilient

The ability to quickly recover from difficulties; emotional strength and toughness.

Business Trip

A journey undertaken for work or professional reasons, often involving travel outside one's regular place of employment.

Long-Term Goal

An objective or aim that is intended to be achieved over a prolonged period, often several years or more.