Lead Time for Computers Is 5 Days with Daily Demand

question 27

Multiple Choice

Lead time for computers is 5 days with daily demand of 15 and safety stock of 5 computers. If management wants to use 10 kanbans how many computers should each one hold?

• A) 25
• B) 1
• C) 8
• D) 10
• E) 13

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Definitions:

Capacity Utilization Rate

A measure of how well an economy or a firm is using its productive capacity to manufacture goods or services.

Unemployment Rate

A gauge of the share of individuals in the labor pool who are not employed but are actively seeking a job.

Economy Operated

Refers to the manner in which a nation’s economic systems and policies are managed and function to produce goods and services.

Percent Unemployment

The slice of the labor force that remains without work but is actively engaging in job search.