Asked by Martin Sanchez on May 20, 2024
Verified
Daily usage of a product is 20 units. Since the plant operates 250 days per year, this leads to annual usage of 5000 units. Setup cost is $100 and annualized carrying cost is $90. Daily production of this product is 75 units. Lead time is eleven days, and safety stock is six day's production. What is optimal kanban size? What is the optimal number of kanbans?
Kanban Size
Refers to the quantity of work or inventory items that a Kanban card or signal controls in a Kanban system, aiming to optimize workflow and reduce waste in a pull-based production system.
Setup Cost
The expenses incurred to prepare equipment or processes for manufacturing or service provision.
Carrying Cost
Expenses associated with holding or storing inventory over a period, including warehousing, insurance, depreciation, and opportunity costs.
- Gauge the perfect kanban size and number of kanbans necessary for diverse environments.
Verified Answer
JB
Justin BaileyMay 22, 2024
Final Answer :
Setup Cost 100 Annual Holding Cost 90 Daily Production 75 Annual Usage 5000 Daily Usage 20 Lead Time 11 Safety Stock (in days) 6 Days per year 250\begin{array} { | l | r | } \hline \text { Setup Cost } & 100 \\\hline \text { Annual Holding Cost } & 90 \\\hline \text { Daily Production } & 75 \\\hline \text { Annual Usage } & 5000 \\\hline \text { Daily Usage } & 20 \\\hline \text { Lead Time } & 11 \\\hline \text { Safety Stock (in days) } & 6 \\\hline \text { Days per year } & 250 \\\hline\end{array} Setup Cost Annual Holding Cost Daily Production Annual Usage Daily Usage Lead Time Safety Stock (in days) Days per year 1009075500020116250 Results
Kanban size 123.0913 Number of Kanbans 1.836033\begin{array} { | l | l | } \hline \text { Kanban size } & 123.0913 \\\hline \text { Number of } & \\\text { Kanbans } & 1.836033 \\\hline\end{array} Kanban size Number of Kanbans 123.09131.836033 2 Kanbans
Kanban size 123.0913 Number of Kanbans 1.836033\begin{array} { | l | l | } \hline \text { Kanban size } & 123.0913 \\\hline \text { Number of } & \\\text { Kanbans } & 1.836033 \\\hline\end{array} Kanban size Number of Kanbans 123.09131.836033 2 Kanbans
Learning Objectives
- Gauge the perfect kanban size and number of kanbans necessary for diverse environments.