You Have Been Called in as a Consultant to Set

question 38

Multiple Choice

You have been called in as a consultant to set up a Kanban control system.The first thing you 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 1,200 per hour.You estimate the safety stock should be set at 5% of the demand during lead time.The tote trays used as containers can hold 2 units of stock and the lead time to replenish an order is 10 hours.Which of the following is the number of Kanban card sets necessary to support this situation?

• A)5,000
• B)5,500
• C)6,300
• D)6,500
• E)7,000

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Relative Value

A measure of the worth of something in comparison to the price, quantity, or value of another item or measure.