Asked by kiasjah mathews on May 12, 2024
Verified
Daily usage of a product is 10 units. Since the plant operates 300 days per year, this leads to annual usage of 3000 units. Setup cost is $15 and annualized carrying cost is $20. Daily production of this product is 14 units. Lead time is nine days, and safety stock is two day's production. What is optimal kanban size? What is the optimal number of kanbans?
Kanban Size
The quantity of work or materials specified by a Kanban card, used in a pull system to control inventory and workflow.
Setup Cost
The expenses incurred to prepare equipment or processes for manufacturing an order or a batch of goods, including costs for adjusting machines, cleaning, and changing tooling.
Safety Stock
Extra inventory kept on hand to protect against stockouts caused by unpredictable demand or supply delays.
- Identify the perfect kanban size and total the necessary kanbans for miscellaneous environments.
Verified Answer
AF
Ashawnti FlournoyMay 16, 2024
Final Answer :
Setup Cost 15 Annual Holding Cost 20 Daily Production 14 Annual Usage 3000 Daily Usage 10 Lead Time 9 Safety Stock (in days) 3 Days per year 300\begin{array} { | l | r | } \hline \text { Setup Cost } & 15 \\\hline \text { Annual Holding Cost } & 20 \\\hline \text { Daily Production } & 14 \\\hline \text { Annual Usage } & 3000 \\\hline \text { Daily Usage } & 10 \\\hline \text { Lead Time } & 9 \\\hline \text { Safety Stock (in days) } & 3 \\\hline \text { Days per year } & 300 \\\hline\end{array} Setup Cost Annual Holding Cost Daily Production Annual Usage Daily Usage Lead Time Safety Stock (in days) Days per year 15201430001093300 Results
Kanban size 125.499 Number of Kanbans 0.741042\begin{array} { | l | l | } \hline \text { Kanban size } & 125.499 \\\hline \text { Number of } & \\\text { Kanbans } & 0.741042 \\\hline\end{array} Kanban size Number of Kanbans 125.4990.741042 1 kanban
Kanban size 125.499 Number of Kanbans 0.741042\begin{array} { | l | l | } \hline \text { Kanban size } & 125.499 \\\hline \text { Number of } & \\\text { Kanbans } & 0.741042 \\\hline\end{array} Kanban size Number of Kanbans 125.4990.741042 1 kanban
Learning Objectives
- Identify the perfect kanban size and total the necessary kanbans for miscellaneous environments.