Kanban Replenishment

Kanban is a means of supporting pull-based replenishment in manufacturing systems. A Kanban system is a self-regulating pull system that leads to shorter lead times and reduced inventory. Kanban systems are typically applied to items that have relatively constant demand and medium-to-high production volume.

Kanbans represent replenishment signals that are usually manual and highly visible such as a color-coded card that moves with the material, a light that goes on when replenishment is required, or an empty bin that is moved to the supply location to trigger replenishment.

The system provides support for external devices such as bar code readers to read kanban cards and trigger a replenishment signal.

Kanbans can be sourced from an external supplier or an internal organization. A “Supplier” kanban triggers a purchase request to the supplier, while an “inter-org” kanban results in an inter-organization transfer.

Kanbans are generally replenishable and cycle through the system from full to empty, remaining active until they are withdrawn. One-time signals called non-replenishable kanbans are used primarily to manage sudden spikes in demand.

  1. Creation of Kanban Item



    Make sure that ‘Release time fence’ is ‘Kanban item’



  2. Create Kanban Supplier





  3. Create a blanket agreement

    Associate item with supplier



  4. Create Approved Supplier list associating document with the supplier





  5. Create Kanban Supplier Sourcing Rule


  1. Assign the Sourcing Rule and Item through the Assignment Set





  2. Create Pull Sequence







  3. Create Kanban Card

    Click on Generate Cards

    This should create 2 cards with automatically generated Card number. Both the cards will be in

    Card Status – Active

    Supply Status — New



  1. Replenish one card

    Click on Replenish button


  2. Check Kanban Card Activity


    It shows that Supply Status moved from New à In Process with Blanket release yet to be received



  3. Perform the receipt




  4. Check the Kanban Card Activity

    Supply Status changes to Full



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