The number of Kanbans Concept introduction : The Japanese word for card is termed as Kanban and has critical application in the “Just in Time” concept. The JIT philosophy was developed to reduce the inventory holding costs at various levels of the production chain. The materials are supplied to the process area just when they are needed in a particular operation. Supplying the materials before they are actually needed, adds to inventory carrying costs. It also may result in more space being occupied, additional handling, spoilage, obsolescence and so on. The Kanban system relies on visual or simple signals to indicate to production systems that the product is needed .

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Chapter 16, Problem 7P

Summary Introduction

To determine: The number of Kanbans

Concept introduction:

The Japanese word for card is termed as Kanban and has critical application in the “Just in Time” concept. The JIT philosophy was developed to reduce the inventory holding costs at various levels of the production chain. The materials are supplied to the process area just when they are needed in a particular operation. Supplying the materials before they are actually needed, adds to inventory carrying costs. It also may result in more space being occupied, additional handling, spoilage, obsolescence and so on.

The Kanban system relies on visual or simple signals to indicate to production systems that the product is needed.

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