Lead Time for Computers Is 7 Days with Daily Demand

question 130

Multiple Choice

Lead time for computers is 7 days with daily demand of 5 computers and a safety stock of 1 day. Each kanban holds 8 computers. What is the correct number of kanbans?

• A) not enough information
• B) 1
• C) 5
• D) 7
• E) 8

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Definitions:

Financing

The act of providing funds for business activities, making purchases, or investing, including means such as loans, equity investments, and other financial instruments.

Compensating Balance

A portion of a loan that banks require borrowers to leave in their checking accounts. Effectively increases the bank’s yield. A minimum balance required to compensate banks for their services.

Checking Account

A bank account that allows depositors to write checks against deposited funds, making it easy to access and manage money for daily transactions.

Loan Cost

The total expense that a borrower incurs to take out a loan, including interest rates, fees, and any other charges.