Maggie Moylan Motorcycle Corp. uses kanbans to sup- port 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
x daily usage of 80 mainshafts)
Lead time = 3 days
Safety stock = 1/2day’s production of mainshafts
