Optimally locating in-house logistics areas to facilitate JIT-supply of mixed-model assembly lines

Simon Emde and Nils Boysen

International Journal of Production Economics, 2012, vol. 135, issue 1, 393-402

Abstract: In modern-day production systems, ever-rising product variety poses a great challenge for the internal logistics systems used to feed mixed-model assembly lines with the required parts. As an answer to this challenge many manufacturers especially from automobile industries have identified the supermarket-concept as a promising part feeding strategy to enable flexible small-lot deliveries at low cost. In this context, supermarkets are decentralized in-house logistics areas in the direct vicinity of the final assembly line, which serve as intermediary stores for parts. Small tow trains are loaded with material in a supermarket and deliver parts Just-in-Time to the stations lying on their fixed route. This paper discusses the general pros and cons of the supermarket-concept and treats the decision problem of determining the optimal number and placement of supermarkets on the shop floor. A mathematical model is proposed, an exact dynamic programming algorithm presented, and the validity of the proposed approach for practical purposes as well as the trade-off resulting from fixed installation and maintenance cost is investigated in a comprehensive computational study.

Keywords: Mixed-model assembly lines; Just-in-Time; Material supply; Tow trains (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:135:y:2012:i:1:p:393-402

DOI: 10.1016/j.ijpe.2011.07.022

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