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Daily Usage of a Product Is 15 in a Facility

Question 120

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Daily usage of a product is 15 in a facility that operates every day of the year. Setup cost is $30 and annualized carrying cost is $120 per unit. Daily production of this product is 20. Lead time is 15 days; safety stock is one day's production. What is the optimum kanban size and number of kanbans?

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