Lead Time for Computers Is 7 Days with Daily Demand

question 2

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)4.5
• B)1
• C)5
• D)7
• E)8

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Definitions:

Maximum Price

The highest price a buyer is willing to pay for a good or service or the highest price allowed by regulation.

Required Rate

The minimum annual percentage return that an investment must yield to be considered worthwhile, often influenced by the risk involved and market conditions.

Expected Growth Rate

The annual rate at which an investment, earnings, or value is expected to grow.

Annual Dividend

Annual dividend is the total amount of dividend payments a shareholder receives from a company in one year.