Simulation-Based Optimization Approach for an Extended-Kanban Control System

An approach to optimize the control parameters for an extended-kanban control system (EKCS) is studied. The EKCS is a Just-in-Time production system that involves the advantages of classical kanban and base-stock control systems. Although EKCS can be modeled as a discrete-time Markov chain, the state space is gigantic even for a single stage production system, making it impossible to numerically compute the Markov chain. Thus, we propose a simulation-based algorithm for parameter optimization.