Comparative analysis of ordering models for an international co-operative global complementary production system

Abstract

In recent years, international co-operative global complementary production systems (ICGCPS), especially in the automobile industry, have been widely developed in order to improve the international coordination and division of labor in the developing countries. ICGCPS is a global production system with several production bases located in several countries. In order to get the advantages of scale merit, each production base produces only special kinds of components and machining parts for the total demand required in all the participating countries, and supplies them to the other production bases. This paper aims to design a production, inventory and transportation system to realize high productivity and low inventory in the ICGCPS for the mutual development of all the countries. We will propose two types of ordering models based on the concept of the pull-type ordering system in the form of a mathematical model. One is a product-oriented ordering model and the other is a component-oriented ordering model. We make a comparative analysis of these two ordering models with respect to the distribution properties of ordering, withdrawal and inventory quantities at each stage and stock point for determining adequate buffer stock in the system.