Optimal inventory costs in a complementary flexible manufacturing system

Flexible manufacturing systems (FMS) have provided job shop-type operations a variety of solutions to their widely documented inefficiencies. FMS come with a wide spectrum of capabilities and are used in a wide variety of manufacturing environments. The present study proposes there are situations where inventory control issues need to be considered during the FMS set-up planning. It has developed a non-linear mathematical programming model, which also has binary variables, to optimize inventory costs during the set-up planning for a sample FMS installation. The solution to the mathematical model is non-trivial. It shows that using this model in conjunction with analytical methods such as constraint propagation and generate-and-test, and sigmoid function approximations, facilitates robust solutions to some of the subproblems of the FMS set-up problem. The study also provides an exchange curve based framework for analysing the implications of inventory policy variables on decisions made at the FMS set-up stage.