Asked by Joseph Bartmann on Apr 28, 2024
Verified
Daily usage of a product is 10 units. Since the plant operates 250 days per year, this leads to annual usage of 2500 units. Setup cost is $60 and annualized carrying cost is $80. Daily production of this product is 14 units. Lead time is three days, and safety stock is one day's production. What is optimal kanban size? What is the optimal number of kanbans?
Kanban Size
Kanban size refers to the quantity of work or production capacity represented by a kanban card in a lean manufacturing system, aimed at controlling the flow of resources through the production process.
Setup Cost
The expenses involved in configuring a process, machine, or system for a particular production run or task.
Carrying Cost
The total cost of holding inventory, including storage, insurance, taxes, depreciation, and opportunity costs.
- Calculate the most appropriate kanban dimensions and tally the required kanbans for various situations.
Verified Answer
AS
Agung SeptaApr 30, 2024
Final Answer :
Setup Cost 60 Annual Holding Cost 80 Daily Production 14 Annual Usage 2500 Daily Usage 10 Lead Time 3 Safety Stock (in days) 1 Days per year 250\begin{array} { | l | r | } \hline \text { Setup Cost } & 60 \\\hline \text { Annual Holding Cost } & 80 \\\hline \text { Daily Production } & 14 \\\hline \text { Annual Usage } & 2500 \\\hline \text { Daily Usage } & 10 \\\hline \text { Lead Time } & 3 \\\hline \text { Safety Stock (in days) } & 1 \\\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 60801425001031250 Results
Kanban size 114.5644 Number of Kanbans 0.27059\begin{array} { | l | l | } \hline \text { Kanban size } & 114.5644 \\\hline \text { Number of } & \\\text { Kanbans } & 0.27059 \\\hline\end{array} Kanban size Number of Kanbans 114.56440.27059 1 kanban
Kanban size 114.5644 Number of Kanbans 0.27059\begin{array} { | l | l | } \hline \text { Kanban size } & 114.5644 \\\hline \text { Number of } & \\\text { Kanbans } & 0.27059 \\\hline\end{array} Kanban size Number of Kanbans 114.56440.27059 1 kanban
Learning Objectives
- Calculate the most appropriate kanban dimensions and tally the required kanbans for various situations.