In Setting Up a Kanban Control System You Need to Determine

question 28

Multiple Choice

In setting up a kanban control system you need to determine the number of kanban card sets needed. If the expected demand during lead time is 25 per hour, the safety stock is 20% of the demand during lead time, the container size is 5, and the lead time to replenish an order is 5 hours, what is the number of kanban card sets needed?

• A) 5
• B) 20
• C) 27
• D) 30
• E) 34

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Definitions:

Profit Margin

A financial metric that measures the percentage of revenue remaining after deducting all expenses, indicating the efficiency and profitability of a company's operations.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing debt or equity financing.

Debt Ratio

A financial ratio that measures the extent of a company's or individual's leverage, calculated by dividing total liabilities by total assets.

Selling And Administrative Expenses

Combined costs related to the selling of products and the administration of a business, excluding production costs.