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:

Indirect Materials

Materials used in the production process that cannot be directly linked to a specific product, such as lubricants and cleaning supplies.

Supervisor Salaries

Financial compensation paid to employees who oversee the work of other employees, reflecting their management responsibilities and position.

Flexible Budget

A financial plan that adjusts or varies with changes in the volume or activity level.

Machine Hours

A measure of the amount of time a machine is operated, used as a basis for allocating manufacturing overhead costs to products.