Question: A company is trying to reduce inventory by installing a kanban system for compressors on one of its assembly lines. The setup cost = $10,

A company is trying to reduce inventory by installing a kanban system for compressors on one of its assembly lines. The setup cost = $10, Annual holding cost per compressor is $100, Daily production is 200 compressors, Annual usage is 20000, The lead time is 3 days, safety stock is 12 days production of compressors. Determine the size of the kanban and the number of kanbans (containers) needed.

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