Development of a simulation model for an automobile manufacturing facility using just-in-time concepts
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Several simulation studies have been aimed at the testing the compatibility of the Kanban system with other inventory systems in multi-stage production environments. In this study, the authors utilize simulation to evaluate the Action Plate Method (Kanban) and Reorder Point systems within the body-welding and body-pressing plants at the San-Ye automobile manufacturing factory in Taiwan. Results indicate that (1) the Reorder Point system can perform as well as the Action Plate Method system and that (2) reducing setup time and lot size is the most effective way to decrease inventory levels and improve service level.