Maggie Moylan Motorcycle Corp. uses kanbans to support its transmission assembly line. Determine the size of the kanban for the mainshaft assembly and the number of kanbans needed.
Setup cost = $20 Annual holding cost of mainshaft assembly = $250 per unit Daily production = 300 mainshafts
Annual usage = 20,000 (= 50 weeks * 5 days each * daily usage of 80 mainshafts)
Lead time = 3 days
Safety stock = 1 day>s production of main shafts