If you are an Operations Management practitioner this KANBAN
term is not new to the study of Supply Chain Management. KANBAN is a Japanese word for CARD, this
system helps a lot of Japanese manufacturer and supplier of goods both national
and international. The system is also
derived from the “two-bin” Inventory system.
Later I will discuss more of the different important areas that are
deemed useful in understanding the fundamental theories of “KANBAN” Lean System
Methods of Supply Chain Management.
FIXED-QUANTITY INVENTORY SYSTEM:
The inventory system for fixed-quantity derives from the concept and theory of the economic order quantity specifically the term lead-time and the re-order-point. Most high technological companies today that are following the KANBAN system are having this logical formulation inside the computer system where in the user or the person assigned to monitor the flow of inventory will not “crack” his/her head in computing the mathematical functions as the quick flow of business is at hand.
The term Lead-Time directs the theory to the analysis that in a given inventory there must be a buffer stock in order to allow the company to execute the reorder process allowing the period of time in transporting the product from point of origin to the point of destination. Re-order-point on the other hand is the point where in the warehouse manager must inform the purchasing department to order the next batch of goods.
Though the concept of KANBAN is highly used in
manufacturing companies, other industries aside from manufacturing are also
adopting the method of KANBAN due to the fact that the system is so effective
to meet the required goal at the right time.
Business and supply chain management called the given concept as the
Just-in-time (JIT) concept.
On the other
hand, the faculty of managerial accounting will also discuss the topic of
Just-in-time method of computing the accounting and financial cost minimization
taking the advantage from the KANBAN system.
In my next blog I inferically planned to discuss to my readers benefit
the importance of modern social media like facebook, twitter, et al. in
relation towards the higher academic application of supply chain management
theories. Can we use the online social
media platform in assisting the complicated formulation of supply chain both
B2B, B2C, and C2C.
Innovation and collaboration is the future of Supply Chain:
Innovation and collaboration is the future of Supply Chain:
Comments