Combined Kanban-POLCA Production Control in Two-Stage Sequential Hybrid MTS/MTO Production Systems: A Simulation-Based Evaluation

This paper analyzes the performance of a two-stage sequential hybrid MTS/MTO production system in which the order decoupling point is positioned between the manufacturing and assembly stages. In this configuration, the production control task separates into an upstream inventory control problem and a downstream order control problem. To address these jointly, this study examines a combined Kanban-POLCA (Paired-cell Overlapping Loops of Cards with Authorization) approach that applies Kanban to inventory control and POLCA to order control. The feasibility and behavior of this integrated system are evaluated through a simulation experiment. The results show that the considered control factors and their combinations significantly affect system performance, with the combined Kanban-POLCA system achieving superior results compared to the initial POLCA-POLCA system. Based on these findings, this paper outlines theoretical and practical implications that provide guidelines for designing and combining pull systems in two-stage production environments.