The performance evaluation of a multi-stage JIT production system with stochastic demand and production capacities

This paper discusses a single-item, multi-stage, serial Just-in-Time (JIT) production system with stochastic demand and production capacities. The JIT production system is modeled as a discrete-time, M/G/1-type Markov chain. A necessary and sufficient condition, or a stability condition, under which the system has a steady-state distribution is derived. A performance evaluation algorithm is then developed using the matrix analytic methods. In numerical examples, the optimal numbers of kanbans are determined by the proposed algorithm. The optimal numbers of kanbans are robust for the variations in production capacity distribution and demand distribution.

► We study a multi-stage, JIT production system.
► We derive a performance evaluation algorithm using the matrix analytic methods.
► Numerical results are given.