A system dynamics model of a JIT-Kanban system

Just-In-Time production systems are gaining tremendous popularity in modern production environments. Based on the concept of producing exactly the required quantity and type of product, these systems display an excellent ability to adapt to changes in demand as well as permitting greatly reduced work-in-process inventories JIT systems often make reference to ‘Kanbans’ which are the inventory control cards used in most JIT environments. A JIT-Kanban system is one where production is pulled through the process rather than conventional MRP push. This fundamental difference is what gives JIT-Kanban systems their unique characteristics. This paper investigates some of these unqiue characteristics of JIT-Kanban systems by way of a dynamic simulation model. Using system dynamics concepts, the behavior of the system under the stimulus of various exogenous factors is demonstrated.