What type of inventory system is Kanban considered to be?

Kanban is recognized as a Pull Inventory System because it operates on the principle of demand-driven production. In a Pull System, inventory is replenished based on actual consumption rather than forecasted needs. This means that materials and components are only produced or ordered when there is a direct signal from downstream processes that they are needed for production.

The core concept of Kanban involves visual signals, such as cards or boards, that indicate when additional resources are needed, ensuring that production aligns closely with customer demand and reduces excess inventory. This minimizes waste, enhances efficiency, and leads to a more streamlined manufacturing process.

Understanding this concept helps in distinguishing why Kanban is not classified under other types of inventory systems such as Push Systems, which operate based on forecasts rather than real-time data. In contrast, a Pull System like Kanban enhances flexibility, responsiveness, and efficiency in manufacturing.