A Hinge Manufacturing Company Employs a Kanban System for a Component

question 16

Multiple Choice

A hinge manufacturing company employs a Kanban system for a component part. The daily demand is 900 hinges. Each container has a waiting time of 0.05 days and a processing time of 0.37 days. The container size is 60 hinges, and the safety factor (α) is 10 percent. Given this data, the number of Kanbans necessary for the system is:

• A) less than 4 Kanbans.
• B) more than 4 but less than or equal to 8 Kanbans.
• C) more than 8 but less than or equal to 12 Kanbans.
• D) more than 12 but less than or equal to 16 Kanbans.

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Definitions:

Off-Peak Pricing

Pricing strategy that offers lower prices during times of decreased demand to stimulate consumption.

Capacity Management

Integrating the service component of the marketing mix with efforts to influence consumer demand.

Intangible

Non-physical assets or qualities that cannot be easily quantified or touched, such as intellectual property or brand reputation.

Intangibility

The characteristic of services that makes them unable to be touched, seen, tasted, heard, or felt in the same manner that physical goods can be sensed.