The effect of autocorrelated demand in just-in-time production systems

As a system of production planning and inventory control for multi-stage production inventory systems, this paper deals with the Kanban system in the just-in-time concept. In this paper, the autocorrelation of demand is considered as an important factor affecting the performance of the Kanban system. Mathematical models of a Kanban system and its modified system are developed as sequential and concurrent ordering systems, respectively. By means of simulation experiments, the effects of the autocorrelation of demand upon the performances of the systems are investigated and compared with each other. Based on the results, the procedure to design a system of production planning and inventory control is shown.