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 $\frac{1}{2}$ day's production. What is the optimum kanban size, and number of kanbans?

Kanban Size

The specific quantity of work components or tasks represented by a Kanban card, used in the Kanban system to control the flow through the production system.

Setup Cost

The expense incurred to prepare equipment, machinery, or a production facility for a manufacturing run or a project.

Carrying Cost

The total cost of holding inventory, including storage, insurance, depreciation, and opportunity costs.