A Kanban System Is an Important Mechanism for Lean System

question 162

Multiple Choice

A Kanban system is an important mechanism for lean system management. Which one of the following statements regarding the operation of a Kanban system is best?

• A) A typical Kanban used in the JIT system includes information such as item number, unit price, competitor's product name, and its price.
• B) A Kanban can be used to set the order quantity but not the inventory level.
• C) A Kanban and a container move as a pair once production begins at the fabrication process.
• D) An empty container can be exchanged for a full container at the storage location even though no Kanban is on the full container.

---

Definitions:

Stock Issuance

The process of making new shares available for sale by a company, often to raise capital.

Credit To

An accounting entry that increases the balance of liabilities, equity, or revenue accounts, or decreases the balance of assets or expense accounts.

Authorized Stock

Authorized Stock refers to the maximum number of shares a corporation is legally allowed to issue, as specified in its articles of incorporation.

Formal Accounting Entry

A documented record in accounting that notes all the details of a financial transaction within an organization’s financial system.