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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