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A single-stage supply chain system controlled by kanban under just-in-time philosophy

Author

Listed:
  • S Wang

    (Southeast Missouri State University)

  • B R Sarker

    (Louisiana State University)

Abstract

The production system using kanban was pioneered by Toyota Motor Company in Japan and subsequently it was adopted by numerous other Japanese and US companies for applying the just-in-time manufacturing principles. This research studies a single-stage supply chain system that is controlled by kanban mechanism. The supply chain system is modelled as a mixed-integer nonlinear programming (MINLP) problem. It is solved optimally by branch-and-bound method to determine the number of kanbans, batch size, number of batches, and the total quantity over one period. Meanwhile, the kanban operation between two adjacent plants is worked out considering the factors of loading and unloading time, and transport time. Coupled with plant-wide efforts for cost control and management commitment to enhance other measures of performance, a logistics system for controlling the production as well as the supply chain system is developed, which results in minimizing the total cost of the supply chain system. The results show that the improvements in reduction of inventory, wasted labour, and customer service in a supply chain are accomplished through the kanban mechanism.

Suggested Citation

  • S Wang & B R Sarker, 2004. "A single-stage supply chain system controlled by kanban under just-in-time philosophy," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(5), pages 485-494, May.
    • Handle: RePEc:pal:jorsoc:v:55:y:2004:i:5:d:10.1057_palgrave.jors.2601699
    DOI: 10.1057/palgrave.jors.2601699
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    References listed on IDEAS

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    1. Axsater, Sven & Rosling, Kaj, 1999. "Ranking of generalised multi-stage KANBAN policies," European Journal of Operational Research, Elsevier, vol. 113(3), pages 560-567, March.
    2. Lee J. Krajewski & Barry E. King & Larry P. Ritzman & Danny S. Wong, 1987. "Kanban, MRP, and Shaping the Manufacturing Environment," Management Science, INFORMS, vol. 33(1), pages 39-57, January.
    3. Tardif, Valerie & Maaseidvaag, Lars, 2001. "An adaptive approach to controlling kanban systems," European Journal of Operational Research, Elsevier, vol. 132(2), pages 411-424, July.
    4. Sarker, Bhaba R. & Balan, Chidambaram V., 1999. "Operations planning for a multi-stage kanban system," European Journal of Operational Research, Elsevier, vol. 112(2), pages 284-303, January.
    5. Herer, Yale T. & Shalom, Levi, 2000. "The Kanban assignment problem - A non-integral approach," European Journal of Operational Research, Elsevier, vol. 120(2), pages 260-276, January.
    6. Wang, Hunglin & Hsu-Pin (Ben) Wang, 1991. "Optimum number of kanbans between two adjacent workstations in a JIT system," International Journal of Production Economics, Elsevier, vol. 22(3), pages 179-188, December.
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    Cited by:

    1. Sarker, Bhaba R., 2014. "Consignment stocking policy models for supply chain systems: A critical review and comparative perspectives," International Journal of Production Economics, Elsevier, vol. 155(C), pages 52-67.

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