Flores Manufacturing, Inc., is moving to kanbans to support its electronic-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed. Setup cost $16 Annual holding cost subassembly $250 per subassembly 600 subassemblies Daily production Annual usage 62,500 (-50 weeks x5 days each x daily usage of 250 subassemblies) Lead time Safely stock The kanban size is round your response to the nearest whole number) 2 days 1 day's production of subassemblies

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Flores Manufacturing, Inc., is moving to kanbans to support its electronic-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed.
Setup cost
$16
Annual holding cost subassembly $250 per subassembly
600 subassemblies
Daily production
Annual usage
62,500 (-50 weeks x5 days each x daily usage of 250
subassemblies)
Lead time
Safety stock
The kanban size is (round your response to the nearest whole number).
2 days
1 day's production of subassemblies
Transcribed Image Text:Flores Manufacturing, Inc., is moving to kanbans to support its electronic-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed. Setup cost $16 Annual holding cost subassembly $250 per subassembly 600 subassemblies Daily production Annual usage 62,500 (-50 weeks x5 days each x daily usage of 250 subassemblies) Lead time Safety stock The kanban size is (round your response to the nearest whole number). 2 days 1 day's production of subassemblies
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