●Kanban system
The “Kanban system,” also referred to as the “JIT (Just-In-Time) system” is a manufacturing system popularized by Toyota as a method to procure the item that is needed in the quantity needed at the time it is needed.
It keeps intermediate warehousing to a minimum by matching the current
production step to the production status of later steps (which use the part),
and procuring the parts needed from previous steps (parts makers and suppliers).
“Kanban” refers to the statement of work that details the delivery times
and quantities of components, which is carried from the end of later steps
to the beginning of former steps in order to manage production.
Reference
MRP
Abbreviation for “Material Requirements
Planning.”
Reference
Net required quantity
●Economic ordering quantity
“Economic ordering quantity” is a method for calculating the optimal
quantity to order when stocking inventory.
Minimizing the “ordering cost” and “inventory carrying cost” associated with stocking inventory is an important part of running a business to
maintain profitability. Appropriate ordering quantities help maintain an inventory that incurs the lowest cost possible.
Ordering cost
Expenses associated with a single order. Individual orders
for large quantities lower ordering cost, and therefore,
overall cost.
Inventory carrying cost
The expenses required to maintain an inventory including
inventory management. This cost rises with large inventory
volumes or long periods in inventory.
Total inventory cost
Total of inventory carrying cost and ordering cost.
Cost
“Net required quantity” is the quantity of
new parts needed in an order.
●MRP (Materials Requirement Planning)
“MRP (Materials Requirement Planning)” is a method in manufacturing planning for calculating the net required quantity of a part that needs to
be procured.
In MRP, the total quantity of parts that will be required under the manufacturing plan is calculated, and the net required volume is obtained by subtracting the amount that can be placed in inventory.
Total inventory cost
Inventory carrying cost
Ordering cost
Economic ordering quantity
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Volume ordered