2-Bin Replenishment Pull

Introduction to 2-Bin Replenishment Pull

Line-side versus Point-of-Use Stocking
2-Bin Data Needs and Calculations

Two bin replenishment pull system - V1

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Learning Objectives
 Understand the various types of bin replenishment systems

 Know the benefits of a bin system

 Understand when to use a bin System

 Be able to size (calculate) all the parameters for a bin system

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Material Providing & Handling
 Movements to be minimized
 Workers concentrate on the added-value tasks

G F E

How do we S/
E
E
S/

E
S/
replenish H
D

S/E
I

S/E
materials from
C
J

S/E
S/E
supplier to K
B

S/E
L

S/E
workstation?
A
M

Products
Line
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Kanban: 2-Bin System

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2-Bin Replenishment Pull Introduction
 A 2-Bin Replenishment Pull System is a simplified version of a
standard replenishment pull system and maintains the benefits:
 Establishes strategically located buffers of parts within a process
 Raw material
 Manufactured parts
 Purchased parts
 Finished goods
 De-couples the supplying process from the consuming process via the
buffer inventory
 Part replenishment is “triggered” based on consumption

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What Is a 2-Bin Replenishment?
 For many parts in a process, a 2-Bin system can be used to
replenish the parts versus a synchronous supply:
 A bin has enough parts/supplies to cover a calculated period of
usage at the point-of-use.
 When the bin runs out, a 2nd bin is there to take its place while
the “1st” is being refilled/replenished.

 There replenishment locations are: Warehouse, Line-Side

Storage and Point of Use

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Benefits of 2-Bin Replenishment
 Organized and overall cleaner appearance of stored materials

 Reduced frequency of orders submitted to the stockroom/vendor

 Reduced number of trips for re-supply

 Better management of inventory on the shop floor

 More predictable inventory costs
 Improve employee productivity by:
 Eliminating part/supply shortages at the point-of-use
 Reduce time wasted by personnel/supervision retrieving supplies/inventory
from the stockroom and/or vendors
 Eliminate lost or misplaced material

 2-Bin Replenishment can be used for office/safety supplies,

production inventory, production supplies – even at home!

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When to Use 2-Bin Replenishment Pull
 Repetitive product offering/process
 Relatively consistent demand/volume (low variability)
 Part/supply shortages are a consistent/costly problem
 Part/supply inventory costs are “out of control” due to:
 Lost or misplaced parts/supplies
 Lack of issue/dispersal discipline or control

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What Is a Bin?
 Doesn’t necessarily look like a “bin”
 Can be a standard plastic bin (Acro-bin)
 Can also be the box/container the part/supply is shipped in (also called
a “standard pack” – purchasing definition)

 When the box/container method is used, a “bin” can be one

standard pack or several standard packs. Examples:
 1 box of screws
 2 boxes of screws
 1 drum of oil
 30 bags of connectors
 1 roll of labels
 4 tubes of sealant

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2-Bin Replenishment Data
Parameters/Needs
 Demand/Usage (DMD)
 Typically expressed in terms of Average Daily Usage (ADU) in units

 Lead Time (LT)

 The time it takes from when a trigger is sent to when replenishment arrives
 In this case, can also be thought of as “Restocking Time”

 Order Interval (OI)

 If orders/triggers are sent at scheduled times (i.e., not every day, such as once per week)
 Typical 2-Bin systems do not use an Order Interval, as replenishment can occur every day/shift (or more)

 Safety Stock (SS)

 Use the typical replenishment pull system equation: SS = σ * service level * (LT)^.7
 In the absence of the ability to calculate standard deviation, use: 1/2 of the max(LT,OI)*DMD, may be set
otherwise dependent on individual conditions

 Box/Container Quantity
 If stock/supply room or vendor does not break down shipping quantity, then the bin quantity may be set
equal to some multiple of the box/container quantity (standard pack) that the part/supply is shipped in

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2-Bin Replenishment: Workstation
Should I put every component
on the workstation?

L
? Feeding
period?

h
P ?
?
H
max

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Examples

 Inclined smooth plane > Simple solution. iron sheet for example
 2 containers per channel. Used for:
 Fragile components
 Stiff containers : carton, plastic
 Low weight

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Examples: Gravity rollers

 Gravity roller > dynamic solution

 Accumulation > 2 containers
 Fragile components > low-pitched
 Stiff containers : carton, plastic
 High weight
 Improve ergonomics of loading ( length / height )

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Examples: Hoppers

 Hopper > adaptable

 Component in jumble or without wrapping
 Non fragile components and low volume
 Loose container: bags, liner...

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Examples: Loading Chutes

 Loading chute > adaptable

 Enable high number of components in ergonomic zone
 For components in jumble or without wrapping
 Non-fragile components, low volume and simple shape
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Kanban: 2-Bin System

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Kanban Waterspider:
Picking with Occasional Overflow

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Kanban Waterspider:
Reserve Stock and Picking (2 Flows)
Warehouseman
priority 1: Overflow
priority 2: Picking
Warehouse:
Picking with
reserve stock

Water Receiving
spider
Dock

Shipment

Finished
Goods

Cell
Scraps

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Kanban Waterspider:
Only Picking
Receiving

Dock

Water spider

Shipment

Finished
Goods

Cell
Scraps

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Kanban Waterspider:
Direct Flow to Workstation
Receiving

Dock
External
Water spider

Shipment

Internal Finished
Water spider Goods

Cell
Scraps

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2-Bin Replenishment Calculations
 Bin Quantity = Max(LT, OI) * DMD + SS
 If replenishing in standard packs, Bin Quantity is rounded up to the
nearest standard pack multiple
 Example:
 Calculate the Bin Quantity for the following (standard pack
replenishment):
 Item Number: 40567
 Description: Rubber Gloves
 Demand/Usage: 25 pairs/day
 Standard Deviation: 2 pairs/day
 Service Level: 98%
 Lead Time: 2 days (trigger - stock/supply room - replenishment)
 Order Interval: N/A
 Box Quantity: 50 pairs
 Bin Quantity
= [Max (2 days, N/A) * 25 pairs/day] + [2 pairs/day * 2 * (2 days)^.7]
= 57 pairs
 But we have to round up to the nearest standard pack, so:
 Bin Quantity = 57 pairs/50 pairs/box = 2 boxes

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2-Bin Replenishment
Bin Labeling and Information

1 2

Location Location
Part Part
Number Number
Description Description
 Each Bin/Storage Location should have a barcode label or tag.
 Make sure not to use a permanent label applied to a rack/bin, because you will eventually want
to resize and may have to make new labels!
 Labels for Line Side Bins/Tags for Resupply Bins

 Part Number, Description, and Location are Printed.

 Bin Quantity should not be printed (requires too many label changes when resizing –
trigger mechanism or system will have Bin Quantity)
 Each Bin Location should be unique to avoid confusion when restocking.
 Examples are in the Appendix.

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