Jl.62 durabright wants to establish kanbans to feed a newly installed work cell for its line of led traffic signal lamps. the daily production (demand) rate for this new family of products is 110 units. the supplier lead time for the bulb housing, used by all products in this product family, is 7 days. they want to keep 1.75 days of safety stock of this housing on hand (the safety stock factor). the kanban size for the bulb housing components is 73 units. how many kanbans do they require? (display your answer to the most appropriate whole number.)

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers. firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?