A modeling approach to a JIT-based ordering system

In this paper, the authors consider a multi-stage multi-product production, inventory and transportation system and develop a mathematical model for a pull type ordering system based on the concept of a Just-In-Time production system. The present model considers a manufacturing system in which the setup action is improved and can deal with the number of setups required. The authors 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 perfromed by the modeling language. Finally, the authors show a numerical example of the model applied to an actual manufacturing system of an automobile parts manufacturer in order to verify the effectiveness of the approximate procedures and to clarify the applicability of our modeling approach.