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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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