Question

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 $100 per subassembly Daily production 40 subassemblies Annual usage 4,500 (50 weeks times ×5 days each times ×daily usage of 18 subassemblies) Lead time 12 days Safety stock 4 days' production

1.) Kanban container size = _____ units (round your response to the nearest whole number)?

2.) Number of kanbans needed = ______ kanbans (round your response to the nearest whole number)?

Answer 1

Container size = square root of 2DS/H(1-d/p)

Whereas, D=Annual usage

               S= Setup cost

               H=Annual Holding cost

               d = daily usage

               p = daily production

=square root of 2*4500*30/100(1-18/40)

=70.06 =71 units

Demand during lead time = lead time * daily usage of 18 subassemblies =12*18=216 units.

Safety stock = 4days *18 daily subassemblies =72 units.

Total of both = 216+72=288 units

1.) Kanban container size =288 units

2.) Number of kabans needed = Kanban container size / Container size

      288/71=4.056 =5 Kanbans (rounding up)