Webster Manufacturing Inc

question 36

Multiple Choice

Webster Manufacturing Inc. is implementing a Just-in-Time (JIT) system and wants to know how many Kanbans to use for the initial setup of its JIT system. The daily demand is 400 units and each Kanban (i.e., container) holds 15 units. The combined processing and waiting time per container is 0.7 days. If the initial alpha value for safety stock is 0.6, what is the maximum authorized inventory?

• A) More than 100 but less than or equal to 200 units
• B) More than 200 but less than or equal to 300 units
• C) More than 300 but less than or equal to 400 units
• D) More than 400 units

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Definitions:

Correlation

A statistical measurement that indicates the extent to which two or more variables fluctuate together.

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.

Correlation

A statistical measure that indicates the extent to which two variables fluctuate together.

Variables

Elements, features, or factors that are likely to vary or change within the context of a scientific study or experiment.