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Which means of Inventory optimization is more efficient? Kanban or Min/Max

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Question added by SACHITH HARI , Production Planning & Control Engineer , SFO Technologies,NEST GROUP
Date Posted: 2017/09/04
RANJAN SINHA
by RANJAN SINHA , supply chain and logistics manager , Tech Mahindra Business Services

Kanban has his limitations and Min-Max has his , there is a possibility of merging Kanban and Min-Max.

 

Some scenarios I would like to share ,

 

1.when lead time of supply , lead time of demand and demand qty are constant , we don't maximum which is combination of safety stock and basic demand . Hence a basic demand upon constant lead time of supply is enough which is the minimum Inventory to be maintained, here we can apply Kanban.

 

2. When lead time of supply is constant , demand requisition is not constant, supply is assured then Kanban can be implemented . 

 

3.lead time of supply is constant , demand generation is variable, supply is variable, then Min-Max needed to be applied , because safety stock is required.

 

4.lead time of supply is a variable , demand requisition is variable , supply is variable then MIn-Max is required .

 

5. Lead time of demand , lead time of supply , demand requisition, supply qty , if all are variable then MIn-Max is required .

 

Kanban to be implemented requires conditions like lead time and demand have to be of low variance or else we need to implement Min-Max.

 

Recently some better algorithms have been used on managing inventory than Min-Max

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