Logistics/Supply Chain/Con-bon Systems
Russell wrote at 2013-01-04 17:36:18
CONBON (Card Order Notice, Bring Out Notice) differs from JiT (Just-in-Time) ordering in that CONBON practices will have you keeping stock on hand (where JiT keeps no stock beyond what is currently in use).
An example: In a small office you order paper for you copy machine. It isn't cost effective to go to your local Staples (off the shelf office supply) and buy paper by the ream, but it is a waste (of both space and available funds) to purchase a pallet of paper for the small office. Using CONBON you would buy "a sufficient quantity so as to never be left in need", say a box of 8 reams and when stacking these in storage you would place a CONBON card between ream 6 and 7. The CONBON card would tell the person who takes ream 6 to order a new box, and would include the supplier and ordering information.
The same principal applies to larger stock operations. You keep a few units "up front" with a CONBON card/tag between the 75-80% point that tells you to have someone "Bring Out" more from the backend warehouse. The warehouse has a CONBON card at a low point in their stock with reorder information.
This allows you to keep a minimal amount of stock on hand so that your production is never interrupted while also avoiding waste. (JiT avoids waste but can cause delays at the beginning of a new production until the stock is ordered/arrives.)