How can you set up the supply source for the SAP Kanban process?

The correct approach to setting up the supply source for the SAP Kanban process involves utilizing stock transfer reservations for stock transfer. In the context of the Kanban system, it is essential to maintain a continuous flow of materials to production without interruptions. By employing stock transfer reservations, you can effectively manage the transfer of inventory between storage locations. This method facilitates the automatic replenishment of stock based on actual usage and the predefined Kanban triggers.

In a Kanban process, items are typically replenished as they are consumed, and stock transfer reservations streamline this by reserving the necessary quantities from one location to another, thus ensuring that production is never halted due to stock shortages. This approach is particularly effective in environments where inventory levels fluctuate regularly and demand can be unpredictable.

Using quotations for internal procurement, relying solely on purchase orders for all types of procurement, or focusing on purchasing costs for automated prioritization do not align closely with the fundamental principles of the Kanban method, which emphasizes timely and efficient inventory management to support just-in-time production. These alternatives do not provide the same level of control and responsiveness required for effective Kanban implementations.