Certified Supply Chain Professional (CSCP) Practice Exam

What is the primary function of the kanban method in supply chain management?

1. A method of just-in-time production

2. A technique to increase inventory levels

3. A strategy for forecasting demand

4. A process for quality control

The correct answer is: A method of just-in-time production

The kanban method primarily serves as a just-in-time (JIT) production technique within supply chain management. It is a visual management tool that helps control and manage the flow of materials and inventory in a production process. By using visual signals, such as cards or boards, kanban enables teams to identify when to produce more items or re-stock supplies as needed. This system effectively reduces lead times and minimizes excess inventory by allowing production to be closely aligned with actual demand. As a result, the kanban method supports a smoother and more efficient workflow, decreases waste, and enhances overall productivity in supply chain operations. In contrast, techniques aimed at increasing inventory levels do not align with the principles of kanban, which focuses on lean management and reducing unnecessary stock. Strategies for forecasting demand are also distinct from kanban, which emphasizes responsiveness to real-time signals rather than predictions. Lastly, while quality control is essential within the production process, it is not the primary function of the kanban method, as kanban is primarily concerned with managing flow and inventory levels rather than specifically addressing quality issues.