Which one of the following statements is TRUE?
A) Two operating rules for the kanban system are (1) the container size should be equal to at least seven days of supply and (2) each container must have a kanban card.
B) The kanban system is more effective when the assembly schedule calls for small lots and does not fluctuate much from day to day.
C) The number of kanban cards should be equal to the desired safety stock times alpha.
D) Supplier performance is much more important in U.S. environments than such factors as lot sizes, scrap losses, and worker flexibility.

Question

Quizplus · Accepted Answer

The kanban system is designed to work best with small lot sizes and a stable production schedule. Option A is incorrect because there is no one-size-fits-all container size, it depends on the product and demand. Option C is incorrect because the number of kanban cards depends on the demand and production rate, not on safety stock times alpha. Option D is incorrect because supplier performance is only one of many important factors in any production environment.

Which One of the Following Statements Is TRUE