Lead Time for Computers Is 5 Days with Daily Demand

question 133

Multiple Choice

Lead time for computers is 5 days with daily demand of 25 and safety stock of 5 computers. If management wants to use 10 kanbans how many computers should each one hold?

• A) not enough information
• B) 1
• C) 5
• D) 10
• E) 13

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Definitions:

Pension Plan

A retirement savings plan sponsored by an employer, providing a fixed payout to employees upon retirement.

Multiplier

A factor that quantifies the change in economic activity resulting from a change in spending, used in macroeconomic analysis to estimate the effect of investment, government spending, and other economic activities.

Career Average

Indicates the average achievements, earnings, or performance levels over the span of an individual's career.

Social Security

An insurance program available through the United States government that provides income to people who retire, become disabled, or who receive survivor’s benefits.