WIP Inventory Optimization and Tracking in Discrete Product Manufacturing System

2010-01-0399

04/12/2010

Event
SAE 2010 World Congress & Exhibition
Authors Abstract
Content
Organizations spend millions of dollars on analytical and simulation inventory models to optimize inventory across the supply chain. However, these methods are expensive, difficult to implement and fail to capture all the requirements for defining inventory levels across supply chain. The effect of planned and unplanned equipment downtime, a key factor, is not properly utilized in these models. Many methods use standard statistical distributions, which do not fully capture downtime characteristics of an operation. This may lead to inaccurate computation of inventory sizes. The purpose of this paper is to communicate a new analytical approach of defining inventory levels which is robust enough to consider non-normal distributions associated with equipment downtime. The proposed method is easy to use, less time consuming and can be adapted quickly with changing operational dynamics. The method is based on utilizing equipment performance data to scientifically compute inventory levels. It has been piloted in a major automotive manufacturing facility with very significant results and now is in the plant-wide replication mode.
Meta TagsDetails
DOI
https://doi.org/10.4271/2010-01-0399
Pages
9
Citation
Jain, S., "WIP Inventory Optimization and Tracking in Discrete Product Manufacturing System," SAE Technical Paper 2010-01-0399, 2010, https://doi.org/10.4271/2010-01-0399.
Additional Details
Publisher
Published
Apr 12, 2010
Product Code
2010-01-0399
Content Type
Technical Paper
Language
English