Question

In: Operations Management

Describe an “e-kanban” system. Explain it by providing an example of how you would implement it...

Describe an “e-kanban” system. Explain it by providing an example of how you would implement it and how it would work.

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Expert Solution

The e-kanban system can be described as a JIT inventory system which is based upon the actual consumption of the product rather than focusing on demand forecasts for replenishing the inventory. By its philosophy, we can understand that it supports the reason where the inventory is replenished based on the value of need and time when it is needed in place of ordering continuously.

I would implement this system in a video game title/rental store where the inventory is ordered based upon calculating the demand of the consumers for the particular games and based on that value, stocking a lot of the same good/product which then needs to be reordered, instead the title or the product can be ordered based on the demand right now rather than using the forecasted demand which is not possible in an ideal world. This would allow the stock to not have a surplus in their inventory of a product that does not sell as good.


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