Determine the size of the kanban for subassemblies and the, Operation Management

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Determine the size of the kanban for subassemblies and the

Pauline Found Manufacturing ismoving 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: $110 per subassembly

Daily Production: 40 subassemblies

Annual Usage: 3,000 (50 weeks * 5 days each * daily usage of 12 subassemblies

Lead Time: 10 days

Safety Stock: 2 days production

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