Kanban in Japanese means “sign” or “signal”. This system is used in where the items have a relatively stable demand and medium to high production volume.
Kanban Cards are used in a Pull based System. A pull based system is one where inventory items for a particular part or assembly area are replenished as soon as they are needed. When the items are needed, Kanban cards in Oracle Inventory change their Supply Status to Empty, and Inventory generates the Kanban replenishment request.
Kanban represents replenishment signals that are usually manual & highly visible (e.g. Color Coded Card / Empty Bin etc)