Table 7.1 a Toy Company Uses a Kanban System to Make a Make

question 25

Multiple Choice

Table 7.1
A toy company uses a kanban system to make a metal fastener that is a component of several toys. The waiting time for a container of the fasteners during production is 0.25 day; average processing time is 0.15 day per container. Each container holds 200 fasteners. The company uses 2000 fasteners a day in the production of its product.
-Use the information in Table 7.1.How many kanban containers would be required if a 10 % efficiency factor is used?

• A) 3 or less
• B) 4 or 5
• C) 5 or 6
• D) 7 or more

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Definitions:

Unearned Rent Revenue

Income received from tenants for rent that has not yet been earned because the rental period has not occurred.

Current Liability

A financial obligation that is due to be settled within one year or within the normal operating cycle of the business, whichever is longer.

Working Capital

A measure of a company's short-term liquidity, calculated as current assets minus current liabilities.

Segregate Sales

The process of separating sales figures based on certain criteria, such as product line, region, or period, for analysis.