What is the optimal number of kanbans

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Reference no: EM132297358

1. Weekly usage of a product is 8 units. Since the plant operates 50 weeks per year, this leads to annual usage of 400 units. Setup cost is $40 and annualized carrying cost is $80. Weekly production of this product is 12 units. Lead time is four weeks, and safety stock is one week's production. What is optimal kanban size? What is the optimal number of kanbans?

2. Compared to manufacturing, service requirements tend to be more time dependent, location dependent, and volume. In addition, service quality is often observable by customers. Find a recent article in a business magazine that describes how a service organization is struggling with one or more of these issues and make recommendations on what an organization needs to do to overcome these difficulties.

Reference no: EM132297358

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