Lead Time for Computers Is 5 Days with Daily Demand

question 45

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)25
• B)1
• C)5
• D)10
• E)13

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Definitions:

Skimming Strategy

A pricing tactic that involves setting a high price for a new product to maximize profits from segments willing to pay more, before lowering the price over time.

Price Insensitivity

A condition where the demand for a product is unresponsive or less sensitive to changes in its price.

Product Sampling

A promotional tactic where customers are given a sample of a product for free with the goal of increasing awareness or boosting sales.

Initial Purchase

The first time a customer buys a product or service from a business, marking the beginning of the consumer-brand relationship.