Simulation Analysis for Production-Inventory System Considering JIT and Early Delivery

Abstract

　The purpose of this research is to analyze a multi-stage production-inventory system with advance demand information (ADI). The system includes two demand classes: one requests just-in-time (JIT) delivery, and the other prefers early delivery. Also, the base stock policy with the kanban control policy was used for analyzing the system. We investigate the effects of demand lead time, JIT delivery ratio, and early delivery level on the performance measure which is the total average cost, as well as the interaction between the factors. The simulation results show the total average cost decrease with the increase of demand lead time under the circumstances. In addition, the effects of JIT delivery ratio and early delivery level are complicated, and the interaction effect exists between the factors.