Maggie Moylan Motorcycle Corp. uses kanbans to support its transmission assembly

Question

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 Annual holding cost Daily production Annual usage $20 $400 per mainshaft 320 mainshafts/day 25,000 (50 weeks x 5 days each × daily usage of 100 mainshafts) 3 days Lead time Slety stoce s0 days production Kanban container size mainshafts (round your response to the nearest whole number Number of kanbanskanbans (round your response to the nearest whole number)

Explanation / Answer

Production order quantity Q = [(2DS/H(1-d/p)]

In the question,

D=25000

L= 3 days

S=$20

H=$400

p=320

d=100

Q =[(2*25000*20/400(1-100/320)]

Q = (1000000/275)

Q =60.3

Kanban container size = 60

Safety stock =0.5*320 = 160

Number of Kanban =(dL+S)/c = (100*3+160)/60 =7.67

Number of kanban = 8

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