Lead Time for Computers Is 5 Days with Daily Demand

question 133

Multiple Choice

Lead time for computers is 5 days with daily demand of 25 and safety stock of 5 computers. If management wants to use 10 kanbans how many computers should each one hold?

• A) not enough information
• B) 1
• C) 5
• D) 10
• E) 13

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Definitions:

Total Revenue

The total income received by a firm from selling its goods or services, calculated as the price per unit times the number of units sold.

Total Revenue

The total amount of money a company generates from the sale of goods or services before any expenses are subtracted.

Demand Elastic

Refers to how sensitive the quantity demanded of a good is to a change in its price; high elasticity indicates consumers will significantly alter their demand in response to price changes.

Price Effect

The impact on the quantity demanded of a good or service resulting from a change in its price, holding all other factors constant.