Case 6.2 the Jewel Golf Club Company, Which Recently Began Using a Using

question 21

Multiple Choice

Case 6.2
The Jewel Golf Club Company, which recently began using a Kanban system, has had problems with high inventory levels of one of the handle grips used to make several versions of its clubs. Daily demand for the grip is 3,000 units, average waiting time during production is 0.20 day, processing time is 0.10 day per container, and a container holds 150 grips.
-Use the information in Case 6.2. How many Kanban containers would Jewel require if a 5% policy variable is used?

• A) three or fewer
• B) four or five
• C) six or seven
• D) eight or more

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Definitions:

Work in Process

Goods that are midway through the manufacturing process but are not fully finished.

Journal Entry

A record in accounting that represents a transaction, consisting of debits and credits, in the financial books.

Raw Materials Used

The initial ingredients or components that are consumed in the manufacturing process to create a finished product.

Journal Entry

A record of financial transactions in the accounting system, ensuring that all changes in financial statements are documented and explained.