Lead Time for Computers Is 5 Days with Daily Demand

question 133

Multiple Choice

Lead time for computers is 5 days with daily demand of 25 and safety stock of 5 computers. If management wants to use 10 kanbans how many computers should each one hold?

• A) not enough information
• B) 1
• C) 5
• D) 10
• E) 13

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Definitions:

Gross Income

The total income from all sources before any deductions or taxes are taken out.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

Inventory

Inventory encompasses the goods and materials a business holds for the purpose of resale or production.

Management

The process of dealing with or controlling things or people, often within the context of business operations like organizing, planning, and overseeing.