ABC Manufacturing Inc uses a Kanban system for a component. The daily demand is 800 units. Each container has a combined waiting and processing time of 0.34 days. If the container size is 50 and efficiency (safety) factor is 9 percent, how many Kanban card sets should be authorized?
a. 5 sets
b. 6 sets
c. 7 sets
d. 8 sets
B (K = 5.93 or 6)
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A company's history indicates that 20% of its sales are for cash and the rest are on credit. Collections on credit sales are 30% in the month of the sale, 50% in the next month, and 15% the following month. Projected sales for January, February, and March are $60,000, $85,000 and $95,000, respectively. The March expected cash receipts from current and prior credit sales is:
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