Local rules: their application in a kanban system

A theory of local rules was developed using Kauffman and Holland’s work on fitness landscapes. Local rules are used by individuals to increase their chances of survival on a fitness landscape. This paper reports on results from a simulation model of the local rules used by managers in the operation of a kanban system. In this case, local rules were used to optimise chances of survival by deflecting senior management criticism of potential stockouts in the system. The local rules used by the managers were modelled and their success and unintended consequences were reported. Some tentative conclusions about the effectiveness of local rules were advanced.