Consider the Adjacent Work Stations in This Two Card Kanban

question 21

Multiple Choice

Consider the adjacent work stations in this two card Kanban system.Work Center 3 has just pulled the Incoming Parts C box to their work station.What happens to the cards in the Incoming Parts C box and at the work station?

• A) The move card at their station goes in the Incoming Parts C box and the production card is pulled from the Incoming Parts C box to signal the worker at Work Center 2 that there is a need to produce material.
• B) The production card at the station is passed back to Work Center 2 as a signal to produce more material and the move card is left at Work Center 3 to signal that they are ready to accept materials when they are complete at Work Center 2.
• C) The move card at their station goes in the box they will send downstream to Work Center 4 and the production card is placed at the Work Center 3 station while they are working on this batch of material.
• D) The production card at their station goes in the Incoming Parts C box and the move card is pulled from the Incoming Parts C box to signal the worker at Work Center 2 that there is a need to move material.

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including a balance sheet, income statement, and cash flow statement.

Financial Leverage

The use of borrowed funds to finance the acquisition of assets, with the expectation that the income or capital gains from the assets will exceed the cost of borrowing.

Cash Ratio

A liquidity metric that measures a company's ability to pay off short-term liabilities with its cash and cash equivalents.

Debt/Equity Ratio

An index reflecting financial leverage through a company's total debts divided by the equity of its shareholders.