Lead Time for Cakes Is 2 Days with Daily Demand

question 37

Multiple Choice

Lead time for cakes is 2 days with daily demand of 10 cakes and a safety stock of ½ a day. Each container (kanban) holds 1 cake. What is the correct number of kanbans?

• A) not enough information
• B) 1
• C) 5
• D) 10
• E) 25

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Definitions:

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell shares of stock at a set price on or before a given date.

Executive Pay Packages

Compensation plans designed for executive-level employees, which may include a combination of salary, bonuses, stock options, and other benefits.

Short-Term Focus

An approach or strategy emphasizing immediate outcomes or benefits, often at the expense of long-term objectives.

Compensation Plans

Schemes or programs implemented by businesses to remunerate, incentivize, and reward their employees for their performance and contribution to the organization.