Asked by Patrick Alves on May 12, 2024
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Daily usage of an assembly is 100 in a facility that operates 300 days of the year. Setup cost is $5 and annualized carrying cost is $160. Production of this assembly occurs at the rate of 400 per day when production of the assembly is underway. Lead time is 3 days; safety stock is 12\frac { 1 } { 2 }21 day's production. What is the optimum kanban size, and number of kanbans?
Kanban Size
Refers to the capacity or limit set for a kanban, a tool in lean manufacturing and just-in-time production, which signals when more materials or work is needed.
Setup Cost
A fixed cost incurred each time a production process or activity is initiated, which includes costs associated with preparing equipment and facilities for manufacturing.
Carrying Cost
The expenses associated with storing and maintaining inventory, including warehousing, insurance, and spoilage costs.
- Calculate the optimal kanban size and number of kanbans for various scenarios.
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Learning Objectives
- Calculate the optimal kanban size and number of kanbans for various scenarios.