A Kanban system keeps a
very small amount of inventory on hand, so as soon as a customer places an
order, they receive an item from the inventory. Then the factory builds more of
that item, builds work in process needed for the item, and reorders any raw
materials needed, working all the way backwards through the system to ensure
the entire system will be ready to go for the next customer order. The exact
amount of product moved depends on the batch sizes and the customer demand.
This system can change over time as the business adjusts batch sizes and has
changes in sales volume.
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