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Daily Usage of a Product Is 10 Units

Question 139

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Daily usage of a product is 10 units. Since the plant operates 300 days per year, this leads to annual usage of 3000 units. Setup cost is $15 and annualized carrying cost is $20. Daily production of this product is 14 units. Lead time is nine days, and safety stock is two day's production. What is optimal kanban size? What is the optimal number of kanbans?

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