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

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.