Int. J. of Industrial and Systems Engineering   »   2010 Vol.5, No.1

 

 

Title: A simulation study for a hybrid inventory control strategy with advance demand information

 

Author: David Claudio, Jie Zhang, Ying Zhang

 

Addresses:
Department of Industrial and Manufacturing Engineering, The Pennsylvania State University, 310 Leonhard Building, University Park, PA 16802, USA.
Department of Industrial and Manufacturing Engineering, The Pennsylvania State University, 310 Leonhard Building, University Park, PA 16802, USA.
Department of Industrial and Manufacturing Engineering, The Pennsylvania State University, 310 Leonhard Building, University Park, PA 16802, USA

 

Abstract: Choosing the appropriate production and inventory control strategy is a key factor for the success of modern enterprises. Some industries adopt a Make-To-Order (MTO) policy to improve their punctuality and flexibility, while others adopt a Make-To-Stock (MTS) policy to minimise and control the inventory. This study proposes a hybrid strategy combining MTS and MTO with prioritisation. In the proposed strategy, the pull policy is considered for regular demands while a push policy with priority is applied to customers who notify their demand needs in advance. Through a set of simulation experiments this strategy is proved to be of great effectiveness.

 

Keywords: advance demand information; push-pull systems; MTO; make-to-order; MTS; make-to-stock; production economics; hybrid inventory control; production control; simulation; industrial engineering.

 

DOI: 10.1504/IJISE.2010.029754

 

Int. J. of Industrial and Systems Engineering, 2010 Vol.5, No.1, pp.1 - 19

 

Available online: 02 Dec 2009

 

 

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