In establishing lean production, Toyota Motor Company developed a formula to det
ID: 374680 • Letter: I
Question
In establishing lean production, Toyota Motor Company developed a formula to determine the optimal number of kanbans that should be circulating in a single-card kanban loop. Which of the following pieces of data must be collected to utilize this formula?
a. the wholesale price of the inventory item
b. the retail price of the inventory item
c. the amount of workers participating in the loop
d. the demand rate for the inventory item
4. Lean production works best when used in conjunction with a _______ production strategy.
a. make-to-stock
b. level
c. chase demand
d. assemble-to-stock
Explanation / Answer
3) Ans: D
The demand rate is important to find number of Kiazens. The other information required is of Lead time, safety stock, size of kanban. It does not depends on cost
4) Ans C
In chase strategy, production is done only to match with the demand. It thus helps to keep inventory at minimum level and make Lean system