Lead Time for Cakes Is 2 Days with Daily Demand

question 5

Multiple Choice

Lead time for cakes is 2 days with daily demand of 10 cakes and a safety stock of a day.Each container (kanban) holds 1 cake.What is the correct number of kanbans?

• A)not enough information
• B)1
• C)5
• D)10
• E)25

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Definitions:

Units per Year

A measure of production output or activity volume, indicating the number of units produced or sold within a year.

ROI Computation

The calculation of Return on Investment, which measures the gain or loss generated on an investment relative to the amount of money invested.

Net Book Value

The value of an asset after accounting for depreciation or amortization found on a company's balance sheet.

Operating Expense

Expenses incurred from a company's operational activities, excluding cost of goods sold, such as selling, general, and administrative expenses.