Chris Millikan Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines. Determine the

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Chris Millikan Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed.

Setup cost = $30

Annual holding

Cost = $120 per subassembly

Daily production = 20 subassemblies

Annual usage = 2,500 (50 weeks x 5 days each

X daily usage of 10 subassemblies)

Lead time = 16 days,

Safety stock = 4 days’ production of subassemblies.

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Operations management

ISBN: 978-0132163927

10th edition

Authors: Jay Heizer, Barry Render

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Question Posted: Jul 23, 2013 02:38 AM

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Chris Millikan Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines. Determine the

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First we determine the kanban size To do this we determine the prod...View the full answer

Operations management

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