Static Versus Dynamic Control of Material Flow in In-Plant Milk Run System

This paper presents a framework using analytical equations and simulation to choose the best material flow control system based on inventory cost and starvation performance. The study concentrates on in-plant milk run system and compares between traditional material flow control systems such as push and traditional kanban; and a new and more dynamic system which is an electronic kanban. A new electronic kanban system, called adjusted electronic kanban (AEK) that can utilize RFID technology has been proposed to deal with milk run trains shortages to decrease starvation of assembly lines. Simulation results showed that push system is effective when the variability in material consumption is not so high. Moreover, regular kanban is effective if there is sufficient trains’ capacity, but electronic kanban gives lower inventory levels. In the case of severe trains’ capacity shortages, AEK was found to be the best alternative.