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

Authors: Daria Battini, Maurizio Faccio, Alessandro Persona, Fabio Sgarbossa

Addresses: Department of Management and Engineering, University of Padova, Stradella San Nicola, 3 36100 Vicenza, Italy. ' Department of Innovation in Mechanics and Management, University of Padova, Via Venezia 1, 35131, Padova, Italy. ' Department of Management and Engineering, University of Padova, Stradella San Nicola, 3 36100 Vicenza, Italy. ' Department of Management and Engineering, University of Padova, Stradella San Nicola, 3 36100 Vicenza, Italy

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.

DOI: 10.1504/IJSOM.2010.030635

International Journal of Services and Operations Management, 2010 Vol.6 No.2, pp.184 - 205

Published online: 27 Dec 2009 *

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