Inventory management of in-house parts

The in-house parts manufacturing facility of MAN Turkiye A.S., produces several items that feed the assembly line. In-house parts are stocked in warehouses before they enter the assembly lines. Whenever an in-house part is demanded by the assembly line, the part is retrieved from the warehouse and fed into the line. In this project, three sub problems on the management of in-house parts have been solved: (i) determination of the inventory control policies, (ii) determining the best locations of items in the warehouses, and (iii) adoption of Kanban strategy for the movement of some items. Simulation runs based on actual data show that proposed solution alternatives improve the system performance in general. A software which can be used to update the inventory control policy parameters with up-to-date data and which is also compatible with the current ERP software has been developed.