Abstract
In recent years, knockdown production systems (KDPS) have been or are being widely developed in order to avoid trade frictions and improve the international harmony. In this paper, considering the KDPS as three stage production-inventory-transportation system, we formulate the pull type ordering model and analyze the influences of the transportation lead time. Two kinds of buffer capacities, that is, the safety stock of transported component parts and the emergency procurement by the air cargo are introduced and relations between these buffer capacities and the transportation lead time are clarified.
