Case Study 14

1. What is the advantage to the Smith Group of implementing the Kanban

System described in the case?
Ans: Kanban framework is the shrewd method for executing the
methodology like VMI technique without the need of electronic
information exchange. The favorable circumstances of the Kanban
framework as depicted for the situation study are as per the following:
a)
System gives Smith continuous data about client request without
the need of EDI.
b)
A watchful investigation of the card framework utilized
by the Smith Group recommend that its successfully oversees stock at
wholesaler level.
2. Explain how the card system implies that inventory is managed on a basestock
Level.
Ans: The generation in the Kanban framework will be activated by the
interest through the utilization of cards. At the point when conveyance truck
lands at wholesaler's office they gather all cards that are isolates from the
thing sold by the wholesalers. This gives data about the client request that
can be utilized as a part of the generation and conveyance arranging.
Henceforth, target stock can be controlled by the organization, the base
stock level, and every audit period , the stock position is evaluated and the
distribution center requests enough to raise the stock position to the base
stock level.
3. How might the system allow The Smith Group to switch to a make-to-order
environment?
Ans: The Kanban framework takes after the Make to request methodology. As
expressed for the situation study, when conveyance truck touches base at
merchant's office they gather all cards that are withdrawn from the thing
sold by the wholesalers. This gives data about the client request that can be
utilized as a part of the generation and appropriation arranging. This is a
Make-To-Order approach, subsequent to the creation is done in the wake of
gathering the information from the card framework and the key idea utilized
behind this is Pull Strategy. Subsequently, the Smith gathering can change to
Make-To-Order.
4. What is the risk of Kanban system for The Smith Group?

Ans: a)
lead time

inventory may fall beneath reorder indicate due the increment in

b)

sudden change in client request

c)

Forecasting may fluctuate.

5. If the Kanban system is going to allow The Smith Group to reduce the
inventory, what is the impact on the distributor? What are the distributors
going to do with the extra space?
Ans: The impact of Kanban framework on the wholesaler is profited. Since
supplier needs to deal with its own particular stock, it will be more worried
about overseeing it adequately. Henceforth, this will diminish the shots of
Stock out for the wholesaler and subsequently the Service level can be
enhanced b the merchant.