You Have Been Called in as a Consultant to Set

question 16

Multiple Choice

You have been called in as a consultant to set up a Kanban control system.The first thing to do is to determine the number of Kanban card sets needed.Your research shows that the expected demand during lead time for a particular component is 150 per hour.You estimate the safety stock should be set at 25% of the demand during lead time.The tote trays used as containers can hold 8 units of stock and the lead time it takes to replenish an order is 2 hours.Which of the following is the number of Kanban card sets necessary to support this situation?

• A)42
• B)47
• C)68
• D)89
• E)94

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Definitions:

Computer Software

Programs and operating information used by a computer to perform specific tasks or functions.

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price level.

Market Demand Curve

A graph that shows the relationship between the price of a good and the quantity of that good all consumers are willing to purchase at each price level.