IDEAS home Printed from https://ideas.repec.org/a/wly/navres/v54y2007i4p357-370.html
   My bibliography  Save this article

Analysis of decentralized multi‐product pull systems with lost sales

Author

Listed:
  • Cigdem Z. Gurgur
  • Tayfur Altiok

Abstract

We study a pull‐type, flexible, multi‐product, and multi‐stage production/inventory system with decentralized two‐card kanban control policies. Each stage involves a processor and two buffers with finite target levels. Production stages, arranged in series, can process several product types one at a time. Transportation of semi‐finished parts from one stage to another is performed in fixed lot sizes. The exact analysis is mathematically intractable even for smaller systems. We present a robust approximation algorithm to model two‐card kanban systems with batch transfers under arbitrary complexity. The algorithm uses phase‐type modeling to find effective processing times and busy period analysis to identify delays among product types in resource contention. Our algorithm reduces the effort required for estimating performance measures by a considerable margin and resolves the state–space explosion problem of analytical approaches. Using this analytical tool, we present new findings for a better understanding of some tactical and operational issues. We show that flow of material in small procurement sizes smoothes flow of information within the system, but also necessitates more frequent shipments between stages, raising the risk of late delivery. Balancing the risk of information delays vis‐à‐vis shipment delays is critical for the success of two‐card kanban systems. Although product variety causes time wasted in setup operations, it also facilitates relatively short production cycles enabling processors to switch from one product type to another more rapidly. The latter point is crucial especially in high‐demand environments. Increasing production line size prevents quick response to customer demand, but it may improve system performance if the vendor lead‐time is long or subject to high variation. Finally, variability in transportation and processing times causes the most damage if it arises at stages closer to the customer. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007

Suggested Citation

  • Cigdem Z. Gurgur & Tayfur Altiok, 2007. "Analysis of decentralized multi‐product pull systems with lost sales," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(4), pages 357-370, June.
    • Handle: RePEc:wly:navres:v:54:y:2007:i:4:p:357-370
    DOI: 10.1002/nav.20210
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/nav.20210
    Download Restriction: no
    File URL: https://libkey.io/10.1002/nav.20210?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richard E. White & John N. Pearson & Jeffrey R. Wilson, 1999. "JIT Manufacturing: A Survey of Implementations in Small and Large U.S. Manufacturers," Management Science, INFORMS, vol. 45(1), pages 1-15, January.
    2. Debasis Mitra & Isi Mitrani, 1990. "Analysis of a Kanban Discipline for Cell Coordination in Production Lines. I," Management Science, INFORMS, vol. 36(12), pages 1548-1566, December.
    3. Debasis Mitra & Isi Mitrani, 1991. "Analysis of a Kanban Discipline for Cell Coordination in Production Lines, II: Stochastic Demands," Operations Research, INFORMS, vol. 39(5), pages 807-823, October.
    4. Maria Di Mascolo & Yannick Frein & Yves Dallery, 1996. "An Analytical Method for Performance Evaluation of Kanban Controlled Production Systems," Operations Research, INFORMS, vol. 44(1), pages 50-64, February.
    5. Hau L. Lee & V. Padmanabhan & Seungjin Whang, 1997. "Information Distortion in a Supply Chain: The Bullwhip Effect," Management Science, INFORMS, vol. 43(4), pages 546-558, April.
    6. Albino, Vito & Dassisti, Michele & O. Okogbaa, Geoffrey, 1995. "Approximation approach for the performance analysis of production lines under a kanban discipline," International Journal of Production Economics, Elsevier, vol. 40(2-3), pages 197-207, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Zhao Xiaobo & Qiguo Gong & Kenichi Nakashima, 2001. "Analysis of a production system in a general configuration," Naval Research Logistics (NRL), John Wiley & Sons, vol. 48(2), pages 128-143, March.
    3. Iwase, Masaharu & Ohno, Katsuhisa, 2011. "The performance evaluation of a multi-stage JIT production system with stochastic demand and production capacities," European Journal of Operational Research, Elsevier, vol. 214(2), pages 216-222, October.
    4. Mark Vroblefski & R. Ramesh & Stanley Zionts, 2000. "General Open and Closed Queueing Networks with Blocking: A Unified Framework for Approximation," INFORMS Journal on Computing, INFORMS, vol. 12(4), pages 299-316, November.
    5. Kim, Ilhyung & Tang, Christopher S., 1997. "Lead time and response time in a pull production control system," European Journal of Operational Research, Elsevier, vol. 101(3), pages 474-485, September.
    6. Papadopoulos, H. T. & Heavey, C., 1996. "Queueing theory in manufacturing systems analysis and design: A classification of models for production and transfer lines," European Journal of Operational Research, Elsevier, vol. 92(1), pages 1-27, July.
    7. Houmin Yan & Xun Yu Zhou & G. Yin, 1999. "Approximating an Optimal Production Policy in a Continuous Flow Line: Recurrence and Asymptotic Properties," Operations Research, INFORMS, vol. 47(4), pages 535-549, August.
    8. Albino, Vito & Dassisti, Michele & O. Okogbaa, Geoffrey, 1995. "Approximation approach for the performance analysis of production lines under a kanban discipline," International Journal of Production Economics, Elsevier, vol. 40(2-3), pages 197-207, August.
    9. Zipkin, Paul, 1995. "Processing networks with planned inventories: Tandem queues with feedback," European Journal of Operational Research, Elsevier, vol. 80(2), pages 344-349, January.
    10. Ou, Jihong & Jiang, Jiong, 1997. "Yield comparison of push and pull control methods on production systems with unreliable machines," International Journal of Production Economics, Elsevier, vol. 50(1), pages 1-12, May.
    11. Mascolo, Maria Di, 1996. "Analysis of a synchronization station for the performance evaluation of a kanban system with a general arrival process of demands," European Journal of Operational Research, Elsevier, vol. 89(1), pages 147-163, February.
    12. Kojima, Mitsutoshi & Nakashima, Kenichi & Ohno, Katsuhisa, 2008. "Performance evaluation of SCM in JIT environment," International Journal of Production Economics, Elsevier, vol. 115(2), pages 439-443, October.
    13. Ewerhart, Christian & Cassola, Nuno & Valla, Natacha, 2012. "Overbidding in fixed rate tenders: The role of exposure risk," Journal of Banking & Finance, Elsevier, vol. 36(2), pages 539-549.
    14. Baron, Opher & Callen, Jeffrey L. & Segal, Dan, 2023. "Does the bullwhip matter economically? A cross-sectional firm-level analysis," International Journal of Production Economics, Elsevier, vol. 259(C).
    15. Elcio Mendonça Tachizawa & Cristina Giménez, 2005. "Drivers and sources of supply flexibility: An exploratory study," Economics Working Papers 889, Department of Economics and Business, Universitat Pompeu Fabra.
    16. 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.
    17. Sohn, So Young & Lim, Michael, 2008. "The effect of forecasting and information sharing in SCM for multi-generation products," European Journal of Operational Research, Elsevier, vol. 186(1), pages 276-287, April.
    18. Ma, Yungao & Wang, Nengmin & He, Zhengwen & Lu, Jizhou & Liang, Huigang, 2015. "Analysis of the bullwhip effect in two parallel supply chains with interacting price-sensitive demands," European Journal of Operational Research, Elsevier, vol. 243(3), pages 815-825.
    19. Zand, Fardad & Van Beers, Cees & Van Leeuwen, George, 2011. "Information technology, organizational change and firm productivity: A panel study of complementarity effects and clustering patterns in Manufacturing and Services," MPRA Paper 46469, University Library of Munich, Germany.
    20. Nurmilaakso, Juha-Miikka, 2008. "Adoption of e-business functions and migration from EDI-based to XML-based e-business frameworks in supply chain integration," International Journal of Production Economics, Elsevier, vol. 113(2), pages 721-733, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:navres:v:54:y:2007:i:4:p:357-370. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1520-6750 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.