A modeling approach to a JIT-based ordering system

In this paper, we consider a multi-stage multi-product production, inventory and transpor-tation system and develop a mathematical model for a pull type ordering system based on the concept of a Just-In-Time (JIT) production system. Our model considers a manufacturing system in which the setup action is improved and can deal with the number of setups required. We also propose two approximate solution procedures to rapidly obtain a suboptimal solution of the formulated integer programming problem using a mathematical programming modeling language. The approximate procedures are realized utilizing post-optimal analysis which can be performed by the modeling language. Finally, we show a numerical example of the model applied to an actual manufacturing system of an automo-bile parts manufacturer in order to verify the effectiveness of the approximate procedures and to clarify the applicability of our modeling approach.