In a Kanban system, the numerator of the formula K =[d(p + w)(1 + $\alpha$)]/C is analogous to
A)demand during the lead time only in a fixed quantity inventory system.
B)safety stock only in a fixed period inventory system.
C)the order up-to-level (M) in a fixed period inventory system.
D)the reorder point (r) in a fixed quantity inventory system.

Question

Quizplus · Accepted Answer

The numerator in the Kanban formula represents the amount of inventory needed to satisfy demand during the lead time plus the safety stock to cover any variability in demand or lead time. This is similar to the reorder point (r) in a fixed quantity inventory system, which is the level at which a new order needs to be placed to cover demand during lead time plus safety stock. Therefore, the best choice is D.

In a Kanban System, the Numerator of the Formula K α\alphaα

In a Kanban System, the Numerator of the Formula K $\alpha$