The effects of transportation lead-time and safety stock in international co-operative knockdown production systems

Abstract

Abstract. In international co-operative knockdown production systems (ICKDPS), much longer transportation lead-time than production lead-time to procure component parts is required, because the parts are generally containerized by ship. In this paper, in order to determine an economical buffer stock level for a more reliable ICKDPS, a pull-type ordering system which considers the backorder for compensating for shortage of component parts is developed for the ICKDPS as a three-stage production, inventory and transportation system with the concept of 'just-in-time’ production systems. In addition, the effects of transportation lead-time and buffer stock level on the quantity of backlogs and the probability of requirement are clarified by simulation.

Additional information

Notes on contributors

SHUSAKU HIRAKI

SHUSAKU HIRAKI is a professor in the Department of Economics at Hiroshima University. He received the B.S. and M.S. degrees in industrial engineering from Hiroshima University in 1964 and 1966, respectively. He received the Ph.D. degree in industrial engineering from Waseda University in 1977. His major interests are in production planning and control, production ordering systems and designing decision support systems. He is a member of The Institute of Management Science (TIMS), the Japan Industrial Management Association, and the Operations Research Society of Japan.

KAZUYOSHI ISHII

KAZUYOSHI Ishii is a professor in the Department of Industrial Engineering at Kanazawa Institute of Technology in Kanazawa, Japan. His interests include production planning and control, quality management, user's needs assessment and information behaviour in product innovation. He received his Ph.D. in industrial engineering at Waseda University. Dr Ishii is a board member of the International Society for Product Innovation Management, and is on the editorial board of Production Planning and Control.

KATSUHIKO TAKAHASHI

KATSUHIKO Takahashi is a lecturer in production planning and control in the Department of Management Information Systems, Faculty of Management, Hiroshima Prefectural University. He received his Ph.D. degree in industrial engineering and management from Waseda University. His current research interests are in production planning and inventory control, especially the management of multi-stage production and inventory systems, aggregate production planning, and capacity planning. He is a member of the Japan Industrial Management Association, the Operations Research Society of Japan, and the Japan Society for Simulation Technology.