A Hinge Manufacturing Company Employs a Kanban System for a Component

question 9

Multiple Choice

A hinge manufacturing company employs a Kanban system for a component part. The daily demand is 900 hinges. Each container has a wait time of 0.05/day, and a processing time of 0.37 days. The container size is 60 hinges, and the safety factor (α) is 10%. Given this data, the number of Kanbans necessary for this system is _____.

• A) less than 4 Kanbans
• B) more than 4 but less than or equal to 8 Kanbans
• C) more than 8 but less than or equal to 12 Kanbans
• D) more than 12 but less than or equal to 16 Kanbans

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Definitions:

Transactions

Economic activities or events that change the financial position of a company and can be measured in monetary terms.

Business Expense

Expenditures incurred during the operation of a business, considered necessary, ordinary, and customary for conducting business activities.

Income Statement

A report detailing a company's financial activities, including income, expenditures, and profit, over a certain period.

Dividends

Disbursements from a corporation to its shareholders, typically derived from its profits.