Using Kanbans to signal demand requirements for supply chain mgmt.

Kanbans can be used to plan, track and process requirements that are based on supply chain flows. To create a Kanban framework, the rules should be clearly defined: 1) mfg. rules create process Kanban jobs, and 2) withdrawal Kanban rules create transfer Kanban jobs. Here are the replenishment strategies as reference:

1. Fixed quantity Kanban rules are related to a fixed number of handling units, which means that the number of active Kanbans are constant. Whenever all the products from a Kanban are consumed and the handling units are manually emptied, a new Kanban of the same type is created. When you create fixed quantity Kanban rules, you can calculate the optimal Kanban quantities and the product quantities that are used. The calculation takes into account forecast, actual demand from open orders, lead time to replenish items and historical demands.

2. Scheduled Kanban rules replenish requirements that are calculated by master planning which generates planned Kanbans that can be firmed.

3. Event Kanban rules replenish requirements that originate from sales order lines, production BOM lines, Kanban lines, or minimum inventory settings. When event Kanbans are generated, they are pegged to the source requirements.


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