Answer to Question #230042 in Marketing for Natania

Question

What impact would the Kanban system have on Torchbox’s inventory planning methodology?                                                         

                       

Answer 1

Kanban is used to regulate inventory levels and keep them as low as feasible. The method's key feature is that inventory is only refilled when the signal is given. This effectively implies that consumer demand, rather than forecasts and estimates, drives the requirement for resources.