A performance comparison of single product kanban control systems

Abstract

This paper presents a simulation experiment comparing the Single Stage, Single Product Base Stock (BS), Traditional Kanban Control System (TKCS) and Extended Kanban Control System (EKCS). The results showed that BS incurs the highest cost in all scenarios; while EKCS is found to be effective only in a very niche scenario. TKCS is still a very powerful factory management system to date; and EKCS did not perform exceptionally well. The only time EKCS did outperform TKCS was during low demand arrival rates and low Backorder (Cb) and Shortage costs (Cs). That is because during then, it holds no stock. The most important discovery made here is that EKCS becomes TKCS once it has base stock (or dispatched kanbans). The results have also evinced the strength of the pure kanban system, the TKCS over BS. Hence managers using BS should consider upgrading to TKCS to save cost.

Keywords

• Kanban Control System (KCS)
• Base Stock (BS)
• Extended Kanban Control System (EKCS)
• Markov Chain
• Arena
• Simulation