This paper delves into the evaluation of an operation planning for a realistic multi-stage, single-product Kanban managed production system with time varying production rates and finished goods demands. The study pursued is to dynamically and systematically manipulate the production rate of each stage and the raw material orders at the first stage which are corresponding to the minimum integrated inventory costs incurred due to raw materials, finished products and work-in-process (WIP) inventories under a varying demand of finished product. Simulation results verify the effectiveness of the proposed operation planning methodology for a multistage Kanban managed production and supply chain system.

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