How Many Kanbans Should Circulate Between Two Workstations If Demand

question 65

Multiple Choice

How many kanbans should circulate between two workstations if demand is 500 units per hour,lead time is 20 minutes,container sizes are 35,and the company uses a safety factor of 5%?

• A)4
• B)5
• C)12
• D)8

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Definitions:

Activity Base

This term is associated with cost accounting and refers to a measure of activity that is used as a basis for allocating costs to cost objects.

Number of Miles

The number of miles refers to the total distance measured in miles, often used in contexts such as travel, transportation, and delivery services.

Controllable Revenues

Income over which a business or manager has direct control, often affected by decisions on pricing and marketing.

Profit Centers

Parts of an organization that directly add to its profit through their activities, treated as separate entities for financial management purposes.