Olivia Has Had Enough of the Theoretical Equations and Rejects

question 36

Multiple Choice

Olivia has had enough of the theoretical equations and rejects the higher math needed to calculate the number of kanbans for her system. One approach that some organizations take in lieu of the kanban equation is to:

• A)start with one kanban and operate as fast as they can with the one, before adding more kanbans to bring them up to speed.
• B)start with too many kanbans and gradually remove them until a problem arises.
• C)fully load their system with inventory and produce until they cannot build product.
• D)eliminate all inventory from the system and add material and parts until they can fill a customer order.

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Definitions:

Turnover

The rate at which inventory is sold and replaced or an employee leaves and is replaced in a company.

Operating Assets

Assets used for the operations of a business, such as equipment, inventory, and real estate.

Turnover

The total sales or revenue generated by a company within a specific period, indicating the pace at which a business operates.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of several investments.