You Have Been Called in as a Consultant to Set

question 58

Multiple Choice

You have been called in as a consultant to set up a Kanban control system.The first thing to do is to determine the number of Kanban card sets needed.Your research shows that the expected demand during lead time for a particular component is 150 per hour.You estimate the safety stock should be set at 25 percent of the demand during lead time.The tote trays used as containers can hold 8 units of stock, and the lead time it takes to replenish an order is 2 hours.Which of the following is the number of Kanban card sets necessary to support this situation.You found that the number of Kanban cards needed is 47.Your client now tells you that they miscalculated the demand and the true demand is 300 per hour.All other things remain the same.What is the most appropriate answer from the choices below?

• A)Number of Kanban cards will stay the same
• B)Number of Kanban cards will decrease.
• C)number of Kanban cards will be 94
• D)47
• E)23.5 (rounded to 24).

---

Definitions:

Materials Requisitioned

The process or document used to request and authorize the use or withdrawal of materials from inventory for production or other business needs.

Drop-Forge Strokes

A manufacturing process involving the shaping of metal using a heavy hammer or press that drops on the workpiece.

Direct Labor

The cost of wages and benefits for employees directly involved in the production of goods or services.

Overhead Applied

The portion of overhead costs assigned to the production of goods or services.