(Solution Library) Maggie Moylan Motorcycle Corp. uses kanbans to support its transmission assembly line. Determine the size of the kanban for the main shaft assembly
Question: Maggie Moylan Motorcycle Corp. uses kanbans to support its transmission assembly line. Determine the size of the kanban for the main shaft assembly and the number of kanbans needed.
Setup Cost = $20
Annual holding cost of main shaft assembly = $250 per unit
Daily production = 300 main shafts
Annual usage = 20,000 (=50 weeks x 5 days each x daily usage of 80 main shafts)
Lead time = 3 days
Safety stock = 1/2 day's production of main shafts
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