The Number of Kanbans Should Be Equal to

question 29

Multiple Choice

The number of kanbans should be equal to

• A)one.
• B)the ratio of (demand during lead time + safety stock)to container size.
• C) of the EOQ.
• D)one full day's production divided by the EOQ.
• E)three times safety stock.

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Definitions:

Periodic Inventory System

An accounting method that tracks inventory purchases and sales periodically, typically at the end of an accounting period.

Inventory Purchased On Account

Transactions where inventory is acquired by a business without immediate cash payment, indicating a credit purchase recorded in accounts payable.

Proper Journal Entry

A record used in accounting to track the transfer of assets, liabilities, or equity from one account to another, ensuring each transaction is accurately captured.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specific intervals, such as monthly or annually, rather than continuously.