A Manufacturing Company Is Using a Two Container Kanban System

question 50

Multiple Choice

A manufacturing company is using a two container Kanban system between a downstream (using) and an upstream (producing) work center. Each container holds 25 parts. The using work center can handle 100 parts per day. The average elapsed time for the entire cycle is currently 0.4 days. The company is concerned about the efficiency (and safety stock policy) of the operation. The safety stock factor for the current operation is _____.

• A) less than 0.20
• B) more than 0.20 but less than or equal to 0.3
• C) more than 0.3 but less than or equal to 0.4
• D) more than 0.4 but less than or equal to 0.5

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