Affordable Access

Publisher Website

Optimal safety stock levels of subassemblies and manufacturing components

Authors
Journal
International Journal of Production Economics
0925-5273
Publisher
Elsevier
Publication Date
Volume
110
Identifiers
DOI: 10.1016/j.ijpe.2007.02.020
Keywords
  • Make To Order (Mto)
  • Assembly To Order (Ato)
  • Safety Stock
  • Modular Product
  • Super Bill Of Materials (Sbom)
Disciplines
  • Design

Abstract

Abstract In order to control the time to market and manufacturing costs, companies produce and purchase many parts and components before receiving customer orders. Consequently, demand forecasting is a critical decision process. Using modular product design and super bills of materials are two effective strategies for developing a reliable demand forecasting process. They reduce the probability of stockouts in diversified production contexts. Furthermore, managing and controlling safety stocks for pre-assembled modules provide an effective solution to the problem of minimizing the effects of forecast errors. This paper develops, evaluates, and applies innovative cost-based analytical models so that the optimal safety stock of modular subassemblies and components in assembly to order and manufacturing to order systems, respectively, can be rapidly quantified. The implementation of the proposed models in two industrial case applications demonstrates that they significantly reduce the safety stock inventory levels and the global logistical cost.

There are no comments yet on this publication. Be the first to share your thoughts.

Statistics

Seen <100 times
0 Comments

More articles like this

Optimal safety stocks and preventive maintenance p...

on International Journal of Produ... Jan 01, 2007

Optimal control of preventive maintenance schedule...

on International Journal of Produ... Jan 01, 2001

Minimum cost safety stocks for frequent delivery m...

on International Journal of Produ... Jan 01, 1999

The subassemblies problem: Make to stock or combin...

on Journal of Operations Manageme... Jan 01, 1984
More articles like this..