An algorithm to dynamically adjust the number of Kanbans in stochastic processing times and variable demand environment

In a real-life environment, the just-in-time (JIT) system is subjected to various types of uncertainties such as stochastic processing times and variable demand. Since, JIT was only meant to operate in a deterministic environment, its performance is seriously affected by variations in processing times and demand. In this paper, a newly developed Kanban system is presented which uses an algorithm to dynamically and systematically manipulate the number of Kanbans in order to offset the blocking and starvation caused by the said uncertainties during a production cycle. The new system is termed a flexible Kanban system (FKS). The steps of the algorithm are detailed and the effectiveness of FKS is demonstrated using an example model. For the example model, the solution procedure, results and a discussion are presented.