Title: System model of production inventory control

Authors: Dirk Pons

Addresses: School of Engineering, Christchurch Polytechnic Institute of Technology, P.O. Box 540, Christchurch, New Zealand

Abstract: The primary consequence of just-in-time (JIT) production is reduction of inventory with associated financial benefits. However, existing methods cannot adequately explain the causality that leads to failed (or successful) JIT implementations. This paper describes a fresh theoretical approach to examining the larger organisational factors in which inventory control systems are embedded. A structured descriptive system model for production inventory control is described, including base stock, CONWIP, kanban and hybrid systems. The model was then interrogated to produce lists of tentative critical success factors for implementation of these strategies in JIT and lean production, and propose explanations as to why it succeeds or fails.

Keywords: inventory control; production control; just-in-time; JIT production; lean production; systems modelling; IDEF0; organisational factors; base stock; CONWIP; kanban.

DOI: 10.1504/IJMTM.2010.032895

International Journal of Manufacturing Technology and Management, 2010 Vol.20 No.1/2/3/4, pp.120 - 155

Published online: 05 May 2010 *

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