Question: Pauline Found Manufacturing, Inc., is moving to kanbans to support its telephone switching- board assembly lines. Determine the size of the kanban for subassemblies and

Pauline Found 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 * 5 days each * daily usage of 10 subassemblies)

Lead time = 16 days

Safety stock = 4 days> production of subassemblies.

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