Daily usage of a product is 20 units. Since the plant operates 250 days per year, this leads to annual usage of 5000 units. Setup cost is $100 and annualized carrying cost is $90. Daily production of this product is 75 units. Lead time is eleven days, and safety stock is six day's production. What is optimal kanban size? What is the optimal number of kanbans?

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The Answer of Daily usage of a product is 20 units. Since the plant operates 250 days per year, this leads to annual usage of 5000 units. Setup cost is $100 and annualized carrying cost is $90. Daily production of this product is 75 units. Lead time is eleven days, and safety stock is six day's production. What is optimal kanban size? What is the optimal number of kanbans?

Daily Usage of a Product Is 20 Units