Abstract
In the knockdown production systems (KDPS), the transportation lead time to procure the component parts becomes much longer than the production lead time, and it affects the variation of transported inventory quantity. In this paper, considering the KDPS as a three-stage production, inventory and transportation system, we formulate the pull type ordering model in consideration of the emergency procurement, and propose how to design the adequate safety stock of transported component parts which assures the reliability of the final assembly process as economical by as possible.