Stochastic modelling of just-in-time methodology for economic success

Design team members: Premyslaw Kozlowski, Robert Snow

Supervisor: Christina Fader


The introduction of the Just-In-Time methodology has drastically changed the way companies purchase parts from suppliers. Many of the standard old practices have become unacceptable and companies have had to change the way they do business or go under. With these new practices came an increased demand on product scheduling and logistical management of product. Which in turn has increased the costs of the supplier companies.

Project description

The overall objective for this project is to allow manufacturing suppliers to save money and manage the logistics of their business more effectively. To achieve this overall objective a successful strategy has been identified that implements a stochastic mathematical model that assists the management of a company to identify effective choices in the frequency and quantity of deliveries as well as a process to select the transportation method that would succeed.

Design methodology

This project will be done in two distinct parts, as such these parts will coincide with the two terms of the project. A deterministic Just-In-Time model will be created for the end of the Fall Term and a stochastic model in the end of the winter term. The project is being done in this way because the implementation of the stochastic model promises to be challenging. Because of this we will allow for the early part of the winter term to fix any problems that will be identified at that point and then continue to create the stochastic model.