The optimal operation planning of a Kanban system with variable lead times

Abstract

Abstract In the majority of the previous research on Kanban systems delivery lead time is treated as a fixed value. In many practical situations, however, the lead time is variable. In this paper, optimal operation planning of a fixed interval withdrawal Kanban with variable lead times is proposed. A cost is incurred for inventory level less than the safety inventory level, since the risk of shortage of inventory must be considered. Behaviour of the optimal number of Kanbans and the withdrawal interval of Kanbans are investigated in terms of various parameters such as standard deviation and mean lead time.