Dedicated inventory locations, while not required, are much easier to establish and maintain when a part is on supplier eKanban for two reasons. First, with supplier eKanban the supplier is required to ship materials in standard lot and container sizes which often dictate the type of storage. Secondly, maximum inventory levels are more predictable with eKanban allowing you to plan dedicated storage space for each item. Maximum inventory for an eKanban item = (Total # of kanbans in loop) x (standard kanban lot size).

According to Nandu Gopalun, Professional Services leader with Upland, Ultriva by Upland provides loop size variability. He outlined the distinct advantage that can be achieved with dedicated inventory locations. The grocery store always keeps items in the same place making the shopping experience easier. Similarly, loop size variability helps the material handler to handle the inventory so they do not have to chase the parts needed.

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