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