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Abundant literature is available on the application of simulation in solving layout, materials handling, and production control problems, both in traditional and JIT environments. Senko and Suskind [1] have applied simulation in warehouse designs. Watford and Greene[2] reported on the use of simulation to determine minimum storage facility requirements and the length of time for materials to move between terminals. Pulat and Pulat[3] described a handling capacity study of an automated storage and retrieval system. Tavrou and Nagarajah[4] used simulation to compare push and pull systems of production control for an assembly line of an electronic device. Hearn[5] used simulation to analyse the effect of a JIT type solution to control materials flow and reduce workin-process inventory in a complex environment. More details of simulation and analytical models can be found in Graves et al.[6].This article describes our methods of addressing design problems faced by a leading chemical company in Australia when changing from a traditional manufacturing system to JIT. Our approach was to employ simulation using the SIMAN simulation language.The objective of this article is to report on the use of simulation models in:q analysing the performance of alternative cell designs in terms of materials handling requirements;q estimating the operator work loads under the new JIT operating system;q determining the reorder levels in order to operate the JIT system successfully.

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