Given the Following Information Pertaining to Item AX143,determine the Appropriate

question 4

Multiple Choice

Given the following information pertaining to item AX143,determine the appropriate number of kanban containers that should be used to support production. Demand rate = 500 units/week
Time for container to complete circuit = 2 weeks
Safety stock = 30 percent
Size of container = 5 units

• A) <100 containers.
• B) Between 100 and 500 containers.
• C) >500 containers.
• D) There is not enough information to answer the question.

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Definitions:

Confidence Level

The probability, expressed as a percentage, that the range of a confidence interval contains the true parameter value.

Critical Value

A critical value is a threshold in hypothesis testing that defines the boundary or cutoff points for deciding whether to reject the null hypothesis.

Population Mean

The average value of a property in a population, calculated by summing the values of all members of the population and dividing by the total number of members.

Confidence Interval

A range of values derived from sample statistics that is likely to cover the true parameter of the population with a certain level of confidence.