Question

Choose the correct statement regarding a Kanban system.

a. Kanban system increases the buffer inventory levels.
b. Maximizing the number of Kanbans available will reveal problems that need to be resolved.
c. The upper bound on the work in process inventory (WIP) is set by the number Kanban Cards.
d. The Kanban system is impractical in real life manufacturing environments.

Answer 1

c. The upper bound on the work in process inventory (WIP) is set by the number Kanban Cards.

Step-by-step explanation:

Kanban system is used in inventory management as it minimizes holding and ordering costs of the company. Kanban system helps the company to move towards Just in time and Make to order system. This helps reduce buffer stock for the inventory and goods are made when the order is received.