Requires identification of two important parameters

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Reference no: EM131662523

Design of a kanban system requires identification of two important parameters for each item. One is the "size" of the kanban card. The size of a kanban card indicates how many units of the item in question should be produced each time a card is hung on the rack. This is essentially a lot sizing decision.

The other parameter is the number of kanban cards circulating for each item. If I have three kanban cards for a certain item, I may have all three cards "full" (meaning they are accompanied by finished units waiting for demand to occur), or I may have 2 cards "full" and one hanging on the rack waiting to be refilled, or 1 full and 2 hanging on the rack, etc.

Applying your basic understanding of inventory control parameters, explain the factors that should influence the size of the kanban card, and the number of kanban cards that should be used for a given item.

Reference no: EM131662523

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