Trade-offs between multiskilling and inventory in assembly line operations under demand variability

The demand variability in case of assembly line operations can be absorbed either by multi-skilling of operators on the line, empowering them to handle a wider mix of work-elements or by holding finished goods inventory. This paper examines trade-offs between these two groups of policies by developing a simulation-based model. Four policies are evaluated and their cost implications examined to enable decision makers to choose the best policy depending upon the situation specific parameters. A case study to illustrate the proposed model is presented and results are found to be insightful. A methodology to identify training needs in case of multi-skilling is also developed.