Table 7.2 a Manufacturer Using a Kanban System Has Had Problems with Problems

question 1

Multiple Choice

Table 7.2
A manufacturer using a kanban system has had problems with high inventory levels of one of the component parts it makes. Daily demand for the part is 3000 units, average waiting time during production is 0.20 day, processing time is 0.10 day per container, and a container holds 150 pieces.
-Use the information in Table 7.2.How many kanban containers would be required if a 5 % efficiency factor is used?

• A) 3 or less
• B) 4 or 5
• C) 5 or 6
• D) 7 or more

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Definitions:

Liability Waiver

A document in which one party agrees to relinquish the right to pursue legal action against another party for potential losses or damages.

Substantive Unconscionability

A legal principle that allows courts to refuse to enforce contracts or clauses that are excessively unfair or one-sided.

Bargaining Power

Refers to the ability of one party in a negotiation to influence the terms and conditions in their favor.

Harsh Terms

Unfavorably stringent conditions or stipulations in a contract or agreement that may seem unfair to one party.