Maggie Moylan Motorcycle Corp. uses kanbans to support its transmission assembly line. Determine the size of the kanban for the mainshaft assembly and the number of kanbans needed.

Setup cost = $20 Annual holding cost of mainshaft assembly = $250 per unit Daily production = 300 mainshafts Annual usage = 20,000 (= 50 weeks * 5 days each

* daily usage of 80 mainshafts)

Lead time = 3 days Safety stock = 1 2 day>s production of mainshafts L01