Kanban Logistics
Production based on forecast uses resources to produce items which will not eventually be sold while there is a shortage of those items the market actually demands. Demand lead times are getting shorter in most business while supply lead times are not able to keep pace. This often leaves just one alternative: "make to plan", also called "Push" logistics. The result is that in spite of our excess inventories we are unable to satisfy the demand: we have plenty of what nobody wants and no enough of what they want. "Make to order" or "Pull" logistics produces only what has been ordered by the customer so we avoid dedicating resources to produce unwanted items. The problem usually is lead time: can the customer wait until our supply chain is able to deliver? Kanban One way to implement "Pull" logistics is to use Kanban . A Kanban (Japanese for a card) is a token generated by the consumption of an item (or fixed lot of items) which authoriz...