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Mr MotorCorp. 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 Annual usage = 20,000 (= 50 weeks x 5 days each x 80daily usage of mainshafts) Leadtime = 3 days Safety stock = ½ day’s production of mainshafts.

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