In Setting Up a Kanban Control System You Need to Determine

question 9

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 50 per hour, the safety stock is 20 percent of the demand during lead time, the container size is 4, and the lead time to replenish an order is 8 hours, what number of Kanban card sets is needed?

• A) 60
• B) 80
• C) 90
• D) 120
• E) 150

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Definitions:

Total Cost

The sum of all costs incurred by a business in producing a specific level of output, including both fixed and variable costs.

Purely Competitive Firm

A market structure characterized by a large number of small firms, producing homogenous products, with no single firm able to influence market prices due to perfect competition.

Exchange Rate

The value at which one currency can be exchanged for another, influencing international trade and investment.

Market

A venue or mechanism where buyers and sellers interact to trade goods, services, or information.