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Analysis of Multi-Product Kanban Systems with State-Dependent Setups and Lost Sales

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  • Georg Krieg
  • Heinrich Kuhn

Abstract

We propose a decomposition-based approximation method that generates fairly accurate estimates for steady-state performance measures of a kanban-controlled production system. The manufacturing facility of this system can process items of several different products. Setup and processing times are assumed to be exponentially distributed. Customers arrive according to mutually independent Poisson processes. A customer whose demand cannot be met from stock leaves the system and satisfies his demand elsewhere (lost sales). The manufacturing facility processes items of a product until a target inventory level given by the number of kanbans has been reached. Then the manufacturing facility is set up for the next product according to a fixed setup sequence if the next product's inventory level is below target. Otherwise, this product is skipped (cyclic-exhaustive processing with state-dependent setups). The manufacturing facility idles when the inventory levels of all products are at their target levels. Copyright Kluwer Academic Publishers 2004

Suggested Citation

  • Georg Krieg & Heinrich Kuhn, 2004. "Analysis of Multi-Product Kanban Systems with State-Dependent Setups and Lost Sales," Annals of Operations Research, Springer, vol. 125(1), pages 141-166, January.
    • Handle: RePEc:spr:annopr:v:125:y:2004:i:1:p:141-166:10.1023/b:anor.0000011189.48656.14
    DOI: 10.1023/B:ANOR.0000011189.48656.14
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    Cited by:

    1. Winands, E.M.M. & Adan, I.J.B.F. & van Houtum, G.J., 2011. "The stochastic economic lot scheduling problem: A survey," European Journal of Operational Research, Elsevier, vol. 210(1), pages 1-9, April.
    2. Bijvank, Marco & Vis, Iris F.A., 2011. "Lost-sales inventory theory: A review," European Journal of Operational Research, Elsevier, vol. 215(1), pages 1-13, November.
    3. Park, Chan-Woo & Lee, Hyo-Seong, 2013. "Performance evaluation of a multi-product CONWIP assembly system with correlated external demands," International Journal of Production Economics, Elsevier, vol. 144(1), pages 334-344.
    4. Lopez de Haro, Santiago & Gershwin, Stanley B. & Rosenfield, Donald B., 2009. "Schedule evaluation in unstable manufacturing environments," International Journal of Production Economics, Elsevier, vol. 121(1), pages 183-194, September.
    5. Kumar Satyam & Ananth Krishnamurthy, 2013. "Performance analysis of CONWIP systems with batch size constraints," Annals of Operations Research, Springer, vol. 209(1), pages 85-114, October.
    6. Cigdem Gurgur, 2013. "Optimal configuration of a decentralized, market-driven production/inventory system," Annals of Operations Research, Springer, vol. 209(1), pages 139-157, October.
    7. Sujit De & Shib Sana, 2015. "Backlogging EOQ model for promotional effort and selling price sensitive demand- an intuitionistic fuzzy approach," Annals of Operations Research, Springer, vol. 233(1), pages 57-76, October.

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