Overplanning Factor in Toyota's Formula for Computing the Number of Kanban

Author

Henry C. CO, Gardner-Webb University
Sharafali MOOSA, Singapore Management UniversityFollow

Publication Type

Journal Article

Publication Date

5-1997

Abstract

To determine the number of required kanban, Toyota uses a formula based on the average demand during an order picking cycle, inflated by a constant overplanning factor β. This technical note attempts to characterize the situations where the simplicity of Toyota's formula reconciles with the established operations research paradigm of optimality. The overplanning policy examined in this paper could also be applied to other production inventory control models under uncertainty.

Discipline

Operations and Supply Chain Management | Operations Research, Systems Engineering and Industrial Engineering

Research Areas

Operations Management

Publication

IIE Transactions

Volume

29

Issue

5

First Page

409

Last Page

415

ISSN

0740-817X

Identifier

10.1080/07408179708966346

Publisher

Taylor and Francis

Citation

CO, Henry C. and MOOSA, Sharafali. Overplanning Factor in Toyota's Formula for Computing the Number of Kanban. (1997). IIE Transactions. 29, (5), 409-415.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/892

Additional URL

https://doi.org/10.1080/07408179708966346