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:

European Monetary Union

A coalition of European countries that have adopted a standardized legal tender, the euro, and have a unified monetary policy managed by the European Central Bank.

Domestically

Pertains to activities or production occurring within a country's borders, as opposed to internationally.

Import

Items or services imported from one nation to another for the purpose of selling.

Adam Smith

An 18th-century Scottish economist and philosopher regarded as the father of modern economics, known for his work on free markets and the division of labor.