PLEASE SHOW WORK! 8. A Houston based computer accessories manufacturing firm is

Question

PLEASE SHOW WORK!

8. A Houston based computer accessories manufacturing firm is adopting kanbans for its computer monitor subassembly line. Determine the size of the Kanban for the subassembly line and the number of kanbans needed based on the data below (10 points) . Setup cost = $30 .Annual Holding Cost $120 per monitor subassembly. Daily production = 20 monitors subassemblies. Annual Usage 2,500 (50 weeks * 5 days each * daily usage of 10 subassemblies) Lead time = 16 days Safety stock = 4 days, production of subassemblies . Daily production 20 monitors subassemblies · · · ·

Explanation / Answer

Kanban is the billboard which used to schedule the manufacturing of just in time or lean.

Number of kanban=D*L(1+safety stock)/EOQ=

D=Daily production

L=Lead time

So=20*16(1+4)/31=51.6=52approx

Size of kanban=DD*(LT+SS)/number of kanban-1=20(16+4)/52-1=400/52-1=8-1=7

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