Daily Usage of a Part Is 20 in a Facility

question 15

Essay

Daily usage of a part is 20 in a facility that operates 250 days of the year.Setup cost is $20 and annualized carrying cost is $210.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?

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Definitions:

Tort

A civil wrong or injury, other than breach of contract, for which the court will provide a remedy in the form of an action for damages.

Breach

The violation or non-fulfillment of a contractual obligation, duty, or agreement.

Contract

A legally enforceable promise or set of promises.

Nuisance

That which endangers life or health, gives offense to the senses, violates the laws of decency, or obstructs the reasonable and comfortable use of property.