Flores Manufacturing, Inc., is moving to kanbans to support its electronic-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed. Setup cost $34 Annual holding cost subassembly $220 per subassembly Daily production 300 subassemblies Annual usage 55 comma 000 (equals50 weekstimes5 days eachtimesdaily usage of 220 subassemblies) Lead time 2 days Safety stock one fifth day's production of subassemblies The kanban size is nothing (round your response to the nearest whole number).
