Question

Cristiano Ronaldo is comparing a manufacturing operation using regular lot-sizing and the same operation with a kanban/lean production approach for his FIFA World Cup apparel company.Mr. Ronaldo has asked you what differences would be between the total cost (i.e., inventory holding costs + setup/ordering costs) of each?

Answer 1

Answer:

On the off chance that we look at the absolute expense of stock in both the Kanban and standard parcel measuring technique, the complete expense of Kanban stock model will be not exactly ordinary part estimating. This is because of the way that the Kanban technique is a lean strategy and in this manner the abundance requesting of the stock is dodged and just the required quantitiy of the things is set. This decreases the stock administration and buy cost essentially making it less exorbitant than the normal parcel estimating.