Kanban number determination in transportation system using bi-level approach

The withdrawal Kanban system, by capability of data transferring in supply chain reduces different types of the wastes such as inventories level and unnecessary movements. To achieve the aims of lean production, the parameters of the Kanban system such as the number of Kanban should be determined properly. The number of Kanban problem is a bi-level optimization problem in the current investigation that manufacturer and supplier are in competition. In this paper, the objectives and constraints of withdrawal Kanban problem has been determined based on a case study in automobile industry supply chain. A mathematical bi-level optimization model with non-linear objects has been developed. It is solved by GA and considering two different scenarios in order to reduce manufacturer costs.