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

Daria Battini, Maurizio Faccio, Alessandro Persona and Fabio Sgarbossa

International Journal of Services and Operations Management, 2010, vol. 6, issue 2, 184-205

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.

Keywords: assembly systems; production systems; framework; decentralisation; centralisation; assembly feeding systems; assemble-to-order; ATO; safety stock; components warehousing; warehouse location; services; operations management; materials handling; inventory management. (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (1)

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