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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 =$20=\$ 20

Annual holding cost of mainshaft assembly =$250=\$ 250 per unit

Daily production =300=300 mainshafts

Annual usage =20,000(=50=20,000(=50 weeks ×5\times 5 days each xx daily usage of 80 mainshafts)

Lead time =3=3 days

Safety stock =12=\frac{1}{2} day's production of mainshafts

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In this problem, we will solve for the kanban size and the number of kanbans needed.

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