Dependence of lead time on batch size studied by a system dynamics model

Nabil Mikati (1)

1 XLNT Performance

Most planning models treat lead time as a constant independent of workload, but the resulting order rate implies capacity utilization which in its turn affects the lead time. An important factor that determines production order rate is the batch size, one expects therefore a relationship between batch-sizing and lead time. This dependency is examined for different operational conditions using system dynamics simulation of a manufacturing model comprising a quality control unit which is also the bottleneck of the system. It is shown that there is an optimal batch size that results in a minimum lead time and that inventory level at optimum matches desired inventory. Below optimal batch, lead time increases sharply due to congestion at the bottleneck. The reported results have implications for production planning and implementation of process improvement.

Mots clés: Physical Sciences

Nabil Mikati. Dependence of lead time on batch size studied by a system dynamics model. International Journal of Production Research, 2010, 48 (18), pp.5523-5532. ⟨10.1080/00207540903164628⟩. ⟨hal-00607163⟩