A Company Is Using a Kanban System with 2 Containers

question 19

Multiple Choice

A company is using a Kanban system with 2 containers, each holding 50 parts, between a downstream (using) and an upstream (producing) work center. The using work center can handle 250 jobs per day. The average elapsed time for the entire cycle is currently 0.25 days. The company is concerned about the safety factor for the operation. Which of the following is the safety factor (α) of the current operation?

• A) 20 percent
• B) 60 percent
• C) 80 percent
• D) 40 percent

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Definitions:

Marginal Costs

The increase in cost resulting from the production of an extra unit of a good or service.

Studying Economics

The academic pursuit focused on understanding how societies use limited resources to produce valuable commodities and distribute them among different people.

Marginal Analysis

An approach in economics that examines the effects of adding to or subtracting from the current situation.

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Portable electronic devices used for communication, internet browsing, and multimedia playback.