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:

Transactions

Economic events that affect the financial position of a company, involving the transfer of value between two or more entities.

Stockholder

An individual or entity that owns shares in a corporation, giving them ownership interest and possibly dividends.

Economic Activities

Actions that involve the production, distribution, and consumption of goods and services in an economy.

Measurement System

The collection of units of measurement and rules relating them to each other, used to quantify physical quantities.