Case 8.3 Mike's Mustard Company Uses a Kanban System to Manufacture Bulk

question 108

Multiple Choice

Case 8.3
Mike's Mustard Company uses a Kanban system to manufacture bulk mustard in gallon containers for restaurants.The demand for container lids over an eight-hour production day is 1000 units.The average waiting time for a container of lids is 45 minutes.The processing time for a container of lids is 2 hours,and a container holds 70 lids.
-Use the information in Case 8.3.How many Kanban containers would be required if a 15% policy variable is used?

• A)6 or fewer
• B)7 or 8
• C)15 to 20
• D)20 or more

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Definitions:

Dual Agency

A real estate arrangement where one agent represents both the buyer and the seller in a transaction.

Apparent Authority

The ability of an agent to bind a principal where the principal has not notified third parties of the restricted or terminated authority of the agent.

Principal

A person on whose behalf an agent acts.

Terminated

The end of an employee's employment due to dismissal or discharge by the employer, often for cause or due to organizational changes.