A kanban system is an important mechanism for JIT management.Which one of the following statements regarding the operation of a kanban system is TRUE?
A) A typical kanban used in the JIT system includes various information such as item number, unit price, competitor's product name, and its price.
B) A kanban can be used to set the order quantity, but not the inventory level.
C) A kanban and a container move as a pair once production begins at the fabrication process.
D) An empty container can be exchanged for a full container at the storage location even though no kanban is on the full container.

Question

Quizplus · Accepted Answer

In a kanban system, a kanban and a container move as a pair once production begins at the fabrication process. This is to ensure that there is a constant flow of materials to the production line and that inventory levels are maintained at the optimal level. Option A is incorrect because the information included in a kanban is typically limited to the part number, quantity, and production location, and not the unit price or competitor information. Option B is incorrect because a kanban is used to signal when inventory levels have reached the reorder point and how much material to order, and not just for order quantity. Option D is incorrect because a full container should only be exchanged for an empty container if there is a kanban present on the full container; otherwise, there is no guarantee that the production line actually needs that material.

A Kanban System Is an Important Mechanism for JIT Management