Optimal Design of Flexible Kanban System for a Multi-stage Manufacturing Line

A multi-stage Kanban based production system (MKPS) with variable production rates is considered. This paper is to study and analyse the process of designing an effective flexible Kanban pull system and to design and develop a method for MKPS with varying production rate at different work-stage. Raw materials are replenished at the first work-stage and they are processed through MKPS to generate the finished products. Simultaneous releases of Kanbans are considered to determine the orders for raw parts or semi-finished parts from one stage to another. A study pursued is to determine the optimal number of raw material orders at the first work-stage for a varying (linear) demand pattern to minimize the total inventory cost incurred due to raw materials, finished goods and work-in-process (WIP) inventories. This decision eventually determines the number of Kanbans, the schedule for production, and the dispatching time intervals. Simulation results verify the effectiveness of the optimal operation planning mechanism of MKPS with managed Kanbans.