Free Methods Of Inventory Essay Sample

On the other hand, Kanban is pretty much the very opposite of MRP. Kanban does not pre-forecast the demands of the order, it does not even need high inventory. In fact, Kanban is a method to control inventory (Liker & Meier, 2004). Kanban is a sign to notify the production line whenever they need to replenish something (Liker, 2004). When an item is taken by one division, a Kanban card is sent to the previous division to notify that the item was taken and needs to be replenished. The card itself will also show detailed information about the requested items. The items revolving around will never exceed the number of Kanban cards, thus it helps in controlling inventory.
Liker (2004) outlines that through Kanban, many companies can cut down their inventory level (inventory is considered as a waste in a Toyota Production System), and through Kanban, the frequency of having the right parts increased. Companies shall need to watch over inventories no more.
Kanban is a pull production system. From the end user, the signals will be sent upwards up to the supplier. For high-end products, we still need scheduling (Liker, 2004).
An operations manager should see the type of the item and the demand rate. And as a consideration, the pull system has advantage in a low cost production system, and push has advantage in fulfilling the demands.
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