Modeling of A Pull-Push Assembly Control System To Minimize Inventory and Demand Delay Costs

This study deals with modeling and analysis of an electronic assembly line, which operates according to a pull-push system of production control. Weekly scheduled demands are met from finished products inventory, which in turn trigger production at the first station by signaling with certain number of kanbans, which are equal to the product quantity withdrawn. The successive assembly operations are performed using a push system of production control. The objective of the simulation analysis presented in this paper is to determine the optimum number of kanbans attached to the batches of products in the system to minimize the total system cost, which consists of inventory holding cost, demand delay cost, and transportation costs due to regular and additional shipments of demand. Significance: This paper presents a real case application of JIT production control to an electronic assembly line using simulation modeling. Several costs are considered in the application and the optimum number of kanbans, which have significant effect on the inventory holding, demand delay, and late shipment costs, are determined. Numerical cases are presented to illustrate the modeling concept that could be applied to any serial assembly line system controlled by kanbans.