A study of system dynamics in just-in-time logistics

Just-in-time (JIT) systems are designed to produce and deliver goods or services as needed, using minimal inventories. It is a logistics philosophy focused on reducing inefficiencies and unproductive time in the production process and is practiced by many manufacturing companies. However, earlier research and experience suggest that the interrelationship between JIT and other manufacturing system's components such as product design and business strategies are more complex than it is suggested by the traditional JIT studies. In this paper, an alternative view of JIT is offered by using system dynamics (SD) that concentrates on the total system perspective. An integrated framework of JIT and a Kanban model was built using a SD tool and is used for modelling and simulating. It provides a new paradigm to analyse the logistics policies of a company and understand the customers, competitors, and suppliers interactions that shape the company's performance over time. In this model, the strategies and action steps were addressed and adopted and the resulted in improvement in inventory control, quality and productivity. (C) 2003 Elsevier Science B.V. All rights reserved.