How Many Kanbans Should Circulate Between Two Workstations If Demand

question 65

Multiple Choice

How many kanbans should circulate between two workstations if demand is 500 units per hour,lead time is 20 minutes,container sizes are 35,and the company uses a safety factor of 5%?

• A)4
• B)5
• C)12
• D)8

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Definitions:

Expand

To increase the scale, scope, or size of something, often used in the context of business growth or economic expansion.

Increasing-cost Industry

An industry in which production costs increase as output expands, often due to scarce resources or rising input prices.

Long-run Equilibrium

The condition in which all factors of production can be adjusted, leading to a situation where no firm in the industry wishes to change its output.

Market Price

The current value at which an asset or service can be bought or sold in an open market.