Maggie moylan motorcycle corp. uses kanbans to support its
Maggie Moylan Motorcycle Corp. uses kanbans to supportits transmission assembly line. Determine the size of the kanbanfor 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