Framework to optimise the inventory centralisation/decentralisation degree and feeding policy in assembly systems

Framework to optimise the inventory centralisation/decentralisation degree and feeding policy in assembly systems

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Article ID: iaor201014
Volume: 6
Issue: 2
Start Page Number: 184
End Page Number: 205
Publication Date: Dec 2010
Journal: International Journal of Services and Operations Management
Authors: , , ,
Keywords: inventory
Abstract:

In the modern industrial context, complex materials handling systems and inventory management are necessary to guarantee the high levels of flexibility and efficiency required by production systems. This paper addresses a practical decision-making approach to optimise the correct management of the components in production/assembly systems. Typically, in an Assemble-to-Order (ATO) system, the centralisation/decentralisation degree of the parts stocking point and feeding system are the most important problems to face in order to guarantee the economic and flexible level of the whole production/assembly system. In the international scientific literature, several contributions have been developed about warehouse locations and others have studied feeding system management. This paper introduces a framework that allows the choice of the right degree of centralisation inventory and the optimal feeding system using an integrated approach.

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