"Pull" replenishment performance as a function of demand rates and setup times under optimal settings

Authors:
Silvanus T. Enns
Affiliations:
University of Calgary, Calgary, AB, Canada
Venue:
Proceedings of the 39th conference on Winter simulation: 40 years! The best is yet to come
Year:
2007

Citing 4
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The effects of backorder information and reduced-setup dispatching under reorder point or Kanban replenishment

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Performance effects of setup time reduction with and without decision variable re-optimization: a simulation-optimization study

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Abstract

The problem of optimizing decision variables in a single-stage replenishment loop with capacity-constrained batch processing is examined. Simulation and response surface methods are used to model total inventory and delivery performance for a continuous-review reorder point system and a single-card Kanban system. Performance tradeoff curves based on optimal settings are created using nonlinear optimization. The area under these curves is used as a single response for comparison. If tradeoff curves are experimentally replicated, main and interaction effects can also be statistically analyzed. Results show that under time-varying demand the reorder point system performs slightly better. Improvements in performance with setup time reduction are similar for both systems.