Abstract
In the knockdown production systems (KDPS), much longer transportation lead time is required to procure component parts, because they are generally supplied by marine transportation. This paper aims to investigate the effects of fluctuation of transportation lead time on a KDPS. Formulating a pull type ordering model, variances of arrival and transported inventory quantities are theoretically analyzed under stochastic demand and transportation lead time, The relationship between the system parameters and the probability of stockout is clarified by numerical analysis. Finally, we show some alternatives of buffer capacities which can assure the system's reliability to a pre-determined target level.
