Analysis of local decision rules in a dual-kanban flow shop

A recent article reported the results of a study on the effects of two kanban policy variables – the length of withdrawal cycle and the type of priority rule – on average customer wait time and total inventory. This study extends that work by adding two kanban policy variables and two performance criteria. It reports the results of simulation experiments that were conducted to determine how four policy variables – withdrawal cycle, priority rule, status of waiting withdrawal kanbans, and number of kanbans – influence four performance criteria – average customer wait-time, total inventory, and average number of full containers in the input and output stock points of stations. It was found that the information about waiting withdrawal kanbans in sequencing decisions results in the simultaneous improvement in two conflicting objectives – customer wait time and total inventory. Also, the effects of including the information regarding the status of waiting withdrawal kanbans on system performance are larger than the effects associated with the type of priority rule. The results provide insights into determining the level of each policy variable while fully considering the possible interactions among the variables and the levels of other policy variables to improve system performance. These insights allow for setting the levels of policy variables to make the improvement process smooth.