Article ID: | iaor200972185 |
Country: | United Kingdom |
Volume: | 19 |
Issue: | 7 |
Start Page Number: | 686 |
End Page Number: | 701 |
Publication Date: | Oct 2008 |
Journal: | Production Planning and Control |
Authors: | Rapplod James A, Yoho Keenan D |
Keywords: | inventory |
Recent observations of process manufacturing firms have called into question the efficacy of pursuing lean manufacturing approaches in environments where there is inherent inflexibility in the production environment. We examine a multi-item integrated production-inventory system in which changeover times are significant on the process equipment, and customer demand is highly uncertain. We develop and explore a production stabilising policy in which the length of the production cycle is kept between a lower and upper limit. We discuss how capacity utilisation and demand uncertainty interact with lower and upper limits to affect system performance. A numerical study is conducted to evaluate the accuracy of the approach.