Optimization of Work-in-Progress Inventory of Bottleneck Process: A Case Study of Passenger Car Industry

S.G. Mani and Bhimaraya Metri
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S.G. Mani: S.G. Mani is Research scholar at International Management Institute (IMI), New Delhi, 110016, India. E-mail: sganeshmani@gmail.com
Bhimaraya Metri: Bhimaraya Metri is Professor and Dean (Academics) at International Management Institute (IMI), New Delhi, 110016, India. E-mail: metri@imi.edu

Global Business Review, 2014, vol. 15, issue 4_suppl, 49S-58S

Abstract: The manufacturing of motor vehicle involves series of processes starting from welding steel sheets to form a welded body, painting and assembling sequentially to finally give it a sellable form. The nature and the intricacy involved in each processes determine the rate of production. Also, factors such as machine/equipment breakdowns result in alteration of the production rates further affecting the smooth manufacturing flow. This case study discusses how mismatches in the production rates (designed and altered) in a high-speed conveyors of various processes (starvation/blockages) could be minimized by ensuring optimized buffer storages by building WIP and minimizing risk of demand loss and optimizing inventory costs keeping the productivity also into consideration.

Keywords: Work-in-progress; energy cost; starvation/blockage; buffer; probability (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:sae:globus:v:15:y:2014:i:4_suppl:p:49s-58s

DOI: 10.1177/0972150914550547

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