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The effects of transportation lead-time and safety stock in international co-operative knockdown production systems
Authors:SHUSAKU HIRAKI  KAZUYOSHI ISHII  KATSUHIKO TAKAHASHI  RINTARO MURAMATSU
Institution:1. Faculty of Economics , Hiroshima University , 1-1-89, Higashisendamachi, Naka-ku, Hiroshima, 730, Japan;2. Department of Industrial Engineering , Kanazawa Institute of Technology , Ohgigaoka, 7-1, Nonoichi-cho, Ishikawa-ken, 921, Japan;3. Department of Industrial Engineering , Waseda University , 3-4-1, Ohkubo, Shinjuku-ku, Tokyo, 169, Japan
Abstract: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.
Keywords:
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