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Thursday, June 23, 2011

Kanban replenishment cycle

Replenishment Cycle:
There can be four types of Source type (Inter-org, intra-org, Supplier and Production). Depending on Source type replenishment cycle types differ a little bit.
Four types of kanbans are available:
         Inter Org:      Triggers creation of an internal requisition
         Intra Org:      Triggers creation of a subinventory transfer
         Production:   Triggers creation of a discrete job (released status)
         Supplier:       Triggers creation of a purchase requisition (approved status)

 Once Kanban Cards are generated successfully they are ready to use. Generally initial status is kept to be “New” when we replenish the card status changes to “Empty”.

Replenishment Flow for Kanban Cards:

 Supply Status
         New:          kanban just created and not yet part of replenishment chain
         Empty:       kanban is empty and replenishment signal has been generated - impacts Inter-Org and Supplier source types
         Full:          kanban has been replenished and material is available for use
         Wait:          kanban is waiting for minimum order quantity to be met by the aggregation of cards.
         Inprocess:  For the Supplier source type, PO has been approved. For Inter-Org source type, internal requisition has been approved

Example 1 (Source type as “Suppler”):
First we will see how replenishment of item having Source type as “Suppler”. For that I have selected item 2088067
Here for replenishment Purchase Order is generated and sent to supplier.

Let’s see the cards of this item.         

Now we will replenish (click on Replenish button) Card 6487, the Supply status will become ‘Empty’

Now one requisition gets generated, which needs to be imported.

Put Inventory as ‘Import source’ then press OK button and submit the request.

Note down the request number for future reference.
To see the Requisition Summary go to “Purchasing Super User” responsibility.

Put the details of requisition you are searching for e.g. Item number, Date and so on. Then press Find button to get the requisition.

Now go to “Auto Create” to generate Purchase Order for that requisition. To get better search performance note down the Requisition number (in this case 3665).

Put the requisition number (or other details of Requisition) here to get details.

After this new window will open, containing requisition to be converted into Purchase Order.

            Select the requisitions to generate their Purchase order then select ‘Action’ to be taken, ‘Document Type’ and ‘Group’. And click on Automatic.

            Now click on Create button to send the Purchase Order for approval.

Now get in “Purchase Order Super User” responsibility. Now the PO must get approved.

Open PO with PO number in message above and approve it.

            Here we can see the PO status as “Incomplete”. Now click on Approve button. If the assigned buyer has authority to approve the specified quantity / amount, then PO gets approved.

            Now here see the status of PO, it is “Approved”.

When material is received, we have to make a receipt for that particular PO.

            Thus that material is received, this will reflect in inventory also i.e. “On-hand Quantity”. Also the card status become “Full”

Example 2 (Source type as “Production”):
            Now we will see how replenishment of item having Source type as “Production”. For that I have selected item 2088067-01

Now discrete job to full fill this bin has been raise.

Find the item/assembly for which Discrete job order is raised and make it its status as “Release”. If we want we can release this order automatically.

If item has BOM then we can see its components. As well as if the Item has specific Operation Sequence then we can see those after clicking the button “Operations”.

If item has specific operation routing then job has to go through each operation, then only system will allow to complete the job in system.

Here move the job to last operation of routing. So we can complete the job now.

First we will complete only 10 components even order is for 20.

Now the card status becomes “In Process”. 

Again when we will complete the job for remaining 10 units, the card status will be “Full”.

You may want to refer Generic Kanban Information  


  1. Hi Devendra,

    Nice work here, thanks for it.

    I need a help from you, it's related to Inter-Company between 2 different organization. Can you please let me your email or any where i can write to you about it.

    Thank, Sameet

  2. Hi Devender,
    you blog is excellent most of time for serveral topic i read your blog Thanks for all your efforts, i have a question here
    what is the Signifiance and differnece between,
    1. sub inventory trasfer
    2. inter organization trasfer
    3. intra organization trasfer
    4. internal requiestion and internal SO
    in which case we use above senarios and can give pratical example

  3. Hi Devender,
    Excellent Information. Sometimes we are having problem that one kanban has two descrete jobs. How can it be happened?

  4. Hi

    great article! Extremely useful!

  5. Hi Devender.
    Very informative and well written. Helped answer a question that I always had about how Kanban can be used to automatically replenish stock like reorder point planning or Min Max (Restock- Yes option). However now i know that automatic replenishment is not an option. We have to manually click on 'Replenish'. Am i correct ?

  6. Kanban follows a pull system for replenishing the bins. Unless someone ask for additional material Kanban does not provide it... clicking on Replenish button is nothing but asking for more material.


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