You Have Been Called in as a Consultant to Set

question 38

Multiple Choice

You have been called in as a consultant to set up a Kanban control system.The first thing you 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 1,200 per hour.You estimate the safety stock should be set at 5% of the demand during lead time.The tote trays used as containers can hold 2 units of stock and the lead time to replenish an order is 10 hours.Which of the following is the number of Kanban card sets necessary to support this situation?

• A)5,000
• B)5,500
• C)6,300
• D)6,500
• E)7,000

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Definitions:

Exercise Price

The specified price at which an option's underlying security can be bought (call option) or sold (put option) by the option holder.

Fair Value

The estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Equity-settled

Transactions in which an entity receives goods or services as consideration for its own equity instruments, such as shares or share options.