10.1: Introduction
- Page ID
- 31001
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Inventory contol using kanbans was introduced in Chapter 9. Here, the discussion is extended to include simulation modeling and experimentation of inventory control using kanbans in order to establish target inventory levels. The inventory level is determined by the number of finished goods inventory tags and the number of work-in-process tags allowed. The minimum number of tags needed is proportional to the maximum number of items in the inventories (Mittal and Wang, 1992). Having too few tags causes an interruption in production flow which can lead to unmet demand. Having too many tags causes excess inventory and increases associated costs.