Maggie Moylan Motorcycle Corp. uses kambans to support its transmission assembly line. Determine the size of the

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Maggie Moylan Motorcycle Corp. uses kambans 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 x 5 days each

X daily usage of 80 mainshafts)

Lead time = 3 days

Safety stock = ½ day’s production of mainshafts


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Operations management

ISBN: 978-0132163927

10th edition

Authors: Jay Heizer, Barry Render

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