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Table 7.2
A manufacturer using a kanban system has had problems with high inventory levels of one of the component parts it makes. Daily demand for the part is 3000 units, average waiting time during production is 0.20 day, processing time is 0.10 day per container, and a container holds 150 pieces.
-Use the information in Table 7.2.How many kanban containers would be required if a 5 % efficiency factor is used?
Accounts Payable Period
The average number of days it takes for a business to pay its suppliers.
Receipt Of Inventory
The process of receiving goods or materials into stock, typically recorded at the time of delivery, impacting both inventory levels and accounts payable.
Payment For It
This term refers to the act of disbursing money in exchange for goods or services.
Cash Receipts
The collection of money, either in the form of cash or checks, received by a business during its operations.
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