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 $110 per subassembly
Daily production 25 subassemblies
Annual usage 4,500 (50 weeks x 5 days each x daily
usage of 18 subassemblies)
Lead time 10 days
Safety stock 4 days' production
Kanban container size = units (round your response to the nearest whole number).
Number of kanbans needed = kanbans (round your response to the nearest whole number).
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