Table 7.3 a Company Uses a Kanban System. the Daily Demand for Demand

question 65

Multiple Choice

Table 7.3
A company uses a kanban system. The daily demand for part A is 4000 units. The average waiting time for a container of parts is 0.2 day. The processing time for a container of part A is 0.8 day, and a container holds 300 units.
-Use the information in Table 7.3.How many kanban containers would be required if a 5 % efficiency factor is used?

• A) 10 or less
• B) 11 or 12
• C) 13 or 14
• D) 15 or more

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Definitions:

Accounts Payable Period

This is the average number of days it takes for a business to pay its invoices from suppliers and vendors, indicating the efficiency of its payables management.

Letter Of Credit

A financial document issued by a bank guaranteeing a buyer's payment to a seller within a specified timeframe.

Written Statement

A document that records the details of a declaration or an agreement in writing.

Bank Payment

is a transaction where money is transferred from one bank account to another to fulfill a financial obligation.