In Setting Up a Kanban Control System You Need to Determine

question 48

Multiple Choice

In setting up a Kanban control system you need to determine the number of Kanban card sets needed.If the expected demand during lead time is 50 per hour, the safety stock is 20% of the demand during lead time, the container size is 4.If the lead time to replenish an order is 8 hours, what number of Kanban card sets is needed?

• A)60
• B)80
• C)90
• D)120
• E)150

---

Definitions:

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced.

Socially Optimal

A condition or point where the social welfare, including both consumer and producer welfare, is maximized, often considered in the analysis of market efficiency and interventions.

Pure Competition

A market structure characterized by a large number of small firms, homogeneous products, and easy entry and exit, leading to price taking behavior.

Long Run

A period in which all inputs can be adjusted by firms, allowing new firms to enter or exit the industry.