1. A product has annual demand of 100,000 units. The plant manager wants production to follow a four-hour cycle. Based on the following data, what setup cost will enable the desired production cycle? d=400 per day (250 days per year), p=4000 units per day, H=$40 per unit per year, and Q=200 (demand for four hours, half a day).
A) $2.00
B) $7.20
C) $18.00
D) $64.00
E) $1,036.80
2. 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) Not enough information
B) 1
C) 5
D) 7
E) 8
3. A grocery store is attempting to implement a kanban system. Which of the following would not be an application of kanbans?
A) An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts.
B) A line of 5 people in the Chinese department signaling the department to heat 5 Crab Rangoon.
C) A red light on top of the cashier's lane signals that the cashier needs additional change replenished.
D) The meat department stocking up on turkeys before Thanksgiving.
E) All of the above are kanban applications.
4. A bakery uses 6 containers that each holds 4 cakes. If safety stock is 2 cakes and lead time is 11 days, determine daily demand. Answer = 2 cakes per day.
A) True
B) False
5. Throughput measures the time
A) That it takes to process one unit at a station
B) Between the arrival of raw materials and the shipping of finished products
C) To produce one whole product through an empty system (i.e., with no waiting)
D) Required to move orders through the production process, from receipt to delivery
E) None of the above
6. The technique known as level schedules
A) Requires that schedules be met without variation
B) Processes many small batches rather than one large one
C) Is known as "jelly bean" scheduling
D) Is based on meeting one day's demand with that day's production
E) All of the above are true regarding level scheduling.