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A Kanban Milk-run Coordinated Milk-Run Application

Problem Definition
A material supply system design that serves assembly lines will be designed. Delivery of parts to the stations of an assembly line must occur on a JIT basis: our problem is called JITVRP. This material supply system called: Milk-run System A single central warehouse Stations of the line have a continuous demand rate (Qi)!
At all times, theres some demand of components to be satisfied.

Service of the milk-run system is periodic.


We must find the service period!

Problem Definition
Ex: Qi=10 parts/hr If service period=2 hrs, Delivery to stat-i=20 parts at each cycle. If period=4 hrs, delivery to stat-i=40 parts So as period increases, delivery quantities increase! But, vehicle capacity is limited. Therefore, service period affects route construction!

Activities in a Milk-Run Cycle


When a station starts to consume parts from a container, it issues a Kanban, indicating its requirement of one full container. The vehicle collects all of the Kanbans & empty containers released by stations. Then kanbans are scanned in Barcode station. Orders sent to the Warehouse. Vehicle goes to the Warehouse by holding Kanbans & empty conts.

Activities in a Milk-Run Cycle


Vehicle collects full containers from the warehouse & starts delivering the full containers to the stations assigned to its route. While delivering the full containers at a station's buffer area, the vehicles also pick up the empty containers where the Kanbans are attached. By the end of the route, the vehicle returns to the warehouse holding the empty containers with Kanban. Full containers must be delivered to the buffer, until the buffer stock is exhausted.

Route Construction Example


Vehicle/route capacity= 25 (fixed!). Stations Demand Rate Period 1 2 3 4 5 6 Stations 1 2 3 4 5 6 10/hr 5/hr 7/hr 5/hr 3/hr 20/hr Demand Rate 10/hr 5/hr 7/hr 5/hr 3/hr 20/hr Period 1.5 hr 1 hr

Deliveries
10 5 7 5 3 20 Deliveries 15 7.5 10.5 7.5 4.5 30

Routes
A A A B A B

A A B B B C

Route Construction Algortihm

Objective of RCA
Construct routes & determine service period, such that total material handling & inventory holding cost is minimized!

Constraints
Trip time of a route= Loading unloading times spent in the stations + material transportation times Trip time of a route<= ServicePeriod Service period cannot be smaller than a min value that the supplier can satisfy! Line side buffer area restrictions limit service periods: Periods cannot be too large!

Route Construction Algorithm (RCA)

Candiate Service Times & Costs


2 routes: V=1, V=2 0.75 hr service period minimized total cost! Unit material handling cost (UMHC) is $4/h.
UIHC for the parts of the stations 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13 are $2/h per container. UIHC of panel parts of station 2 is $10/h per pallet.

Constructed Routes
Stations 1-13 : First route.
The total of the delivery quantities to these stations does not violate the milk-run vehicle capacity, and there is no buffer space violation.

Station 2: Panel component: Second route.


Panel component: a great volume in one pallet could not be included in the 1st route, and a second route had to be constructed.

Moreover, since the panel parts are fragile, the pallets of these are wished to be pulled by the tow truck privately, and could not be appended to the milk-run trailers.

Service/Stop Points of Routes

Constructed Routes

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