Using the Formula in the Textbook the Only Parameters We

question 20

True/False

Using the formula in the textbook the only parameters we need to determine the number of Kanban car sets is the average number of units demanded over some time period,the container size,and the safety stock.

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Definitions:

Shortage Per Cycle

The average amount of inventory deficit that occurs during a specific period due to discrepancies between supply and demand.

Stockouts

The situation when demand cannot be fulfilled due to insufficient inventory, leading to potential loss of sales and customer dissatisfaction.

Safety Inventory

The stock of goods or materials kept on hand to protect against variations in demand or supply.

Lumpy Demand

Demand characterized by unpredictable fluctuations and variability, often challenging for businesses to manage effectively.