• P. Charan Kumar Reddy
• R. Sai Siddharth
• ArunKumar .H

Inventory optimization is a method of balancing capital investment constraints or objectives and service-level goals over a large assortment of stock-keeping units (SKUs) while taking demand and supply volatility into account. Inventory optimization can be done through Just in Time (JIT). KANBAN is one such method to achieve JIT. KANBAN is first introduced in Toyota. The very first step in Kanban is to study the demand of the component and adding buffer to it. A Buffer is the extra quantity which is maintained to sustain in the dynamic market. Then arrangements are to be made to store the components. According to the demand along with the buffer storage, certain limit has to be defined. We should ensure that the available stock should not fall below the lower limit. When it falls below the limit, item should be ordered immediately. In two bin system, two bins are used where if one of the bins falls vacant, the worker has to trigger the barcode. Then the supplier will get the order details automatically which is already stored in the barcode. Then they can place the order, without manually ordering it. It reduces the time consumption. In Kanban system, we have to study the market and set some demand so only required amount of components are ordered. Extra inventory can be eliminated.

Inventory Optimization, SKU, Just In Time (JIT), KANBAN System

"Inventory Optimization in Manufacturing Industry ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 5, page no.385-390, May-2019, Available :http://www.jetir.org/papers/JETIRBZ06060.pdf

"Inventory Optimization in Manufacturing Industry ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 5, page no. pp385-390, May-2019, Available at : http://www.jetir.org/papers/JETIRBZ06060.pdf