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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
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 days production of mainshafts
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