Asked by Camilo Uriza on Jul 18, 2024
Verified
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
Safety Stock
Inventory a company holds beyond its expected demand to protect against stockouts due to unpredictable variations in supply and demand.
Kanbans
Signaling systems used within manufacturing and inventory management to regulate the flow of products based on the demand and supply capacity.
- Ascertain the vital factors in estimating the necessary Kanbans for effective production and inventory oversight.
Verified Answer
KF
Karleigh FosterJul 25, 2024
Final Answer :
E
Explanation :
Lead time = 5 days, Daily demand = 25, Safety stock = 5.
Total demand during lead time = 25*5 = 125
Total demand during lead time + safety stock = 125 + 5 = 130.
If management wants to use 10 kanbans, then each one should hold 130/10 = 13 computers. Therefore, the answer is E.
Total demand during lead time = 25*5 = 125
Total demand during lead time + safety stock = 125 + 5 = 130.
If management wants to use 10 kanbans, then each one should hold 130/10 = 13 computers. Therefore, the answer is E.
Learning Objectives
- Ascertain the vital factors in estimating the necessary Kanbans for effective production and inventory oversight.
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