Daily usage of a part is 20 in a facility that operates 250, Operation Management

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Daily usage of a part is 20 in a facility that operates 250

Daily usage of a part is 20 in a facility that operates 250 days of the year. Setup cost is $20 and annualized carrying cost is $210. Production of this part occurs at the rate of 50 per day when production of the part is underway. Lead time is 1 day; safety stock is 1/2 day's production. What is the optimum kanban size, and number of kanbans?

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Operation Management: Daily usage of a part is 20 in a facility that operates 250

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Operation Management: Daily usage of a part is 20 in a facility that operates 250

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