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Kanban, MRP, Reorder Point Methods in MPC system

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1. "Today's kanban research is the modern equivalent of yesterday's economic order quantity research." Do you agree? Explain your answer.

2. There is considerable evidence that getting the correct operating conditions is more important than the choice between MRP, kanban, or reorder point methods in the MPC system. How general do you believe this situation to be?

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This detailed solution discusses kanban research as the modern equivalent of yesterday's economic order quantity research. It also discusses the considerable evidence that getting the correct operating conditions is more important that the choice between MRP, kanban, or reorder point methods in the MPC system. It includes examples and links.

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1. "Today's kanban research is the modern equivalent of yesterday's economic order quantity research." Do you agree? Explain your answer. 



Both Economic Order Quantity and Kanban are based on finding the level of inventory that results in the lowest holding and ordering costs.
Kanban research uses the rate of demand to control the rate of production. Customers or needs determine the demand and this drives the level of inventory. Production is made of only what is needed by demand, not based on a set amount.
The biggest difference between the two is that Economic ...

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