Assignment:
Pauline Found Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed.
Setup cost = $30
Annual holding cost = S120 pa subassembly
Daily production = 20 subassemblies
Annual usage = 3.500 (50 weeks X 5 days each
x daily usage of 10 subassemblies) Lead time = 16 days
Safety stock = 4 days' production of subassemblies
Provide complete and step by step solution for the question and show calculations and use formulas.