Carlow Manufacturing work 5 days a week and 50 weeks per year. They are moving to kanbans
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Question:
Carlow Manufacturing work 5 days a week and 50 weeks per year. They are moving to kanbans to standardise production. Determine the size of the kanban size required for their sub-assemblies and the number of kanbans needed from the following information:
Setup cost = 30.00
Annual holding cost = 120.00 per sub-assembly
Daily production = 20 sub-assemblies
Annual Usage = 2, 500 sub-assemblies
Lead time = 16 days
Safety stock = 4 days production
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