Which statement correctly contrasts Kanban and MRP?

• A. Kanban is a forecast-driven planning system; MRP is a pull signaling system.
• B. Kanban is a push system; MRP is a pull system.
• C. Kanban uses forecast-driven planning; MRP uses Kanban.
• D. Kanban is a visual pull signaling system triggered by consumption; MRP is a forecast-driven planning system based on bills of materials and schedules.

Answer: (D)

Kanban and MRP operate on opposite ideas of what starts the work. Kanban is a visual pull system that uses signals—often cards or containers—that are triggered by actual consumption. When a downstream process or warehouse uses up items, a signal prompts replenishment, so flow is driven by demand and work-in-progress is kept in check. MRP, by contrast, is forecast-driven planning that uses the master production schedule and the bill of materials to time and release material orders ahead of need, pushing materials through the system based on projected demand and lead times. This combination—visual pull signals based on consumption for Kanban, and forecast-driven, BOM-based scheduling for MRP—matches the described contrast. The other statements mislabel Kanban as forecast-driven or push and mischaracterize MRP as something it isn’t.