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Supply Chain and Operations Management Glossary (K)

Kaizen: a Japanese business philosophy meaning to seek continuous improvement. kanban: WIP inventory control system developed at Toyota. A kanban (literally “action plate” in Japanese) is analogous to a recirculating internal PO. That is, when a unit is taken from inventory, a request is automatically generated to the supplier to provide another unit. It is a “pull” system, roughly equivalent to a base stock inventory system. The number of kanbans inserted into the system is essentially equivalent to the reorder point r. kilogram: 1000 grams. 2.2046 pounds. See SI units. kit: a collection of components placed together, perhaps in a container, that tend to…

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