For a Kanban System to Work Properly, Demand Rates Must

question 39

True/False

For a kanban system to work properly, demand rates must be relatively stable, and interruptions must be minimized or quickly resolved.

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Definitions:

Budgeted Sales

Forecasted sales revenue a company expects to earn in a specific period, based on historical data, market analysis, and economic trends.

Raw Material Purchases

The total cost of raw materials bought by a company for use in production over a specific period.

Cash Out

The act of disbursing or spending cash, typically resulting in a decrease in the cash balance of a business or individual.

Raw Materials

The basic materials that are used in the production process of goods, prior to being processed or transformed.