A manufacturing company that uses Kanban to support its transmission assembly, would like to determine the number of kanbans needed given the information below:
Annual usage 30 000 units
Setup cost R 150
Annual holding cost R100
Hourly production 25 units
Lead time 3 days
Safety stock 1½ day of production

Workdays 300 days at 8 hour shift

2.3.1 Determine the size of the kanban.
2.3.2 How many kanbans are required for this assembly line?