Maggie moylan motorcycle corp. uses kanbans to support its

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
Annual holding cost of mainshaft assembly = $250 per units
Daily production=300 mainshafts
Annual usage= 20,000 (=50 weeks x 5 days each x daily usage of 80 mainshafts)
Lead time=3 days
Safety stock=1/2 day’s production of mainshafts

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