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The effects of backorder information and reduced-setup dispatching under reorder point or Kanban replenishment

Published: 03 December 2006 Publication History

Abstract

This research considers a single-stage, capacity-constrained workstation with circulating transporters used for replenishment and independent customer demand for completed parts. Characteristics of reorder point versus Kanban replenishment are examined. One objective is to determine the usefulness of backorder information for upstream order placement. A second objective is to investigate the benefits of dispatching based on setup time reduction. Performance is measured in terms inventory counts and the proportion of customer orders filled from stock. The area under tradeoff curves is used to evaluate comparisons statistically. Results show backorder information and setup time reduction both improve performance and that interaction effects are not significant. This indicates that reorder point systems can outperform Kanban systems whether or not dispatching based on setup time reduction is used.

References

[1]
Enns, S. T. 2006. A comparison of kanban and reorder point replenishment at capacity-constrained workstation. In Proceedings of Summer Computer Simulation Conference, forthcoming.
[2]
Groenevelt, Harry. 1992. "The Just-In-Time System." in Handbooks in Operations Research and Management Science, Vol. 4, Logistics of Production and Inventory, Edited by S. C. Graves, A. H. G Rinnooy Kan and P. H. Zipkin, Elsevier Science Publishers, Amsterdam, The Netherlands.
[3]
Kelton, W. D., R. P. Sadowski, and D. T. Sturrock. 2004. Simulation with Arena, 3rd Ed., New York, NY: McGraw-Hill.
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Krajewski, L. J., B. E. King, L. P. Ritzman, and D. S. Wong. 1987. Kanban, MRP, and shaping the manufacturing environment." Management Science, Vol. 33, No. 1, 39--57.
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Silver, E. A., D. F. Pyke, and R. Peterson. 1998. Inventory Management and Production Planning and Scheduling, 3rd Ed., New York, NY: John Wiley & Sons.
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Sipper, D., and R. L. Bulfin. 1997. Production: Planning, Control and Integration, New York, NY: McGraw-Hill.
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Suwanruji, P., and S. T. Enns. 2001. The role of information, logic and control in comparing approaches to supply chain management. in Proceedings of the 1st International Conference on Integrated Logistics, ed. K. T. Yeo and S. Pokharel, 93--100.
[8]
Suwanruji, P., and S. T. Enns. 2006a. Comparison of supply chain replenishment strategies in a non-capacitated distribution system. International Journal of Risk Assessment and Management, forthcoming.
[9]
Suwanruji, P., and S. T. Enns. 2006b. Evaluating the effects of capacity constraints and demand patterns on supply chain replenishment strategies. International Journal of Production Research, forthcoming.
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Vollmann, T. E., W. L. Berry, D. C. Whybark, and F. R. Jacobs. 2005. Manufacturing Planning and Control for Supply Chain Management, 5th Ed., New York, NY: McGraw-Hill.
[11]
Yang, K. K. 1998. A comparison of reorder point and kanban policies for a single machine production system. Production Planning and Control, Vol. 9, No. 4, 385--390.

Cited By

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  • (2007)"Pull" replenishment performance as a function of demand rates and setup times under optimal settingsProceedings of the 39th conference on Winter simulation: 40 years! The best is yet to come10.5555/1351542.1351834(1624-1632)Online publication date: 9-Dec-2007
  1. The effects of backorder information and reduced-setup dispatching under reorder point or Kanban replenishment

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    cover image ACM Conferences
    WSC '06: Proceedings of the 38th conference on Winter simulation
    December 2006
    2429 pages
    ISBN:1424405017

    Sponsors

    • IIE: Institute of Industrial Engineers
    • ASA: American Statistical Association
    • IEICE ESS: Institute of Electronics, Information and Communication Engineers, Engineering Sciences Society
    • IEEE-CS\DATC: The IEEE Computer Society
    • SIGSIM: ACM Special Interest Group on Simulation and Modeling
    • NIST: National Institute of Standards and Technology
    • (SCS): The Society for Modeling and Simulation International
    • INFORMS-CS: Institute for Operations Research and the Management Sciences-College on Simulation

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    Winter Simulation Conference

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    Published: 03 December 2006

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    • ASA
    • IEICE ESS
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    • NIST
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    • INFORMS-CS
    WSC06: Winter Simulation Conference 2006
    December 3 - 6, 2006
    California, Monterey

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    WSC '06 Paper Acceptance Rate 177 of 252 submissions, 70%;
    Overall Acceptance Rate 3,413 of 5,075 submissions, 67%

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    • (2007)"Pull" replenishment performance as a function of demand rates and setup times under optimal settingsProceedings of the 39th conference on Winter simulation: 40 years! The best is yet to come10.5555/1351542.1351834(1624-1632)Online publication date: 9-Dec-2007

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