Table $8.2$ A Manufacturer Using a Kanban System Has Had Problems with Problems

question 117

Multiple Choice

Table $8.2$
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 8.2. 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:

Goodwill

An intangible asset that represents the excess of purchase price over the fair value of identifiable net assets of an acquired business.

Acquisition Differential

The disparity between what was paid to acquire a company and the net worth of its clearly identified assets adjusted for their fair market value.

Consolidated Balance Sheet

A statement of the combined assets, liabilities, and shareholders' equity of a parent company and its subsidiaries.

Equity Method

A method of accounting for an investment, in which the investment is initially recognized at cost and adjusted thereafter for the post-acquisition change in the investor's share of net assets of the investee.