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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 =$120 per subassembly Daily production = 20 subassemblies Annual usage = 2,500 (
) Lead time = 16 days Safety stock = 4 days’ production of subassemblies
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Step 1
1 of 7In this exercise, we are instructed to determine the asked parameters.
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