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

Question

Quizplus · Accepted Answer

The Kanban system operates with the help of Kanban Cards, which place an upper bound on the Work in Process (WIP) inventory. This ensures that there is a limit on the amount of inventory that can be in the production process at one time, thereby reducing waste and improving efficiency. Option A is incorrect because Kanban systems aim to reduce buffer inventory levels to prevent overproduction. Option B is incorrect because maximizing the number of Kanbans would increase inventory levels and contradict the objectives of the system. Option D is incorrect because Kanban systems are widely used in real-life manufacturing environments and have been found to be effective in improving productivity and reducing waste.

Choose the Correct Statement Regarding a Kanban System