A Study of JIT Application under Stochastic Demand and Supply Arrival

A simulation and analysis of variance study was conducted of a production line system operating in a near Just-In-Time (JIT) mode. The objective was to investigate the effect of four system parameters on the production line idle time and the carrying time of inventory. The system consisted of a production line producing one unit of product each production cycle to a JIT demand, each cycle was defined as one unit of time. The demand arrived stochastically during each cycle. The system was supplied by a supplier delivering materials with a stochastic arrival time of up to two cycles. The four system parameters were (1) operating inventory order quantity, representing a policy of ordering which permitted supply arrival for more than one cycle of production requirement, (2) stochastic demand arrival of up to one cycle, (3) safety stock of up to 3 units (Kanbans) of production, and (4) stochastic arrival of supply of up to three cycles.