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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 unit Daily production = 300 mainshafts

Annual usage = 20,000 (= 50 weeks * 5 days each * daily usage of 80 mainshafts)

Lead time = 3 days

Safety stock = 1 day>s production of main shafts

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