Planning models for continuous supply of parts in assembly systems

Abstract

Purpose – The purpose of this paper is to develop analytical planning models to compare just-in-time (JIT) delivery and line storage (LS) alternatives for a continuous supply of materials to assembly lines. Design/methodology/approach – A mathematical model is developed to size resources and to determine total system costs. Findings – The choice of assembly lines feeding policy requires a thorough economic comparison of alternatives. However, the existing models are often simplistic, neglecting many critical factors which affect the systems’ performances. As a consequence, industries are unsure about which system is best for their environment. This model allows to compare the cost and suitability of two major continuous-supply alternatives in any specific industrial setting. Results of the model application are case-specific and cannot be generalized. Research limitations/implications – The model is aimed at single-model assembly lines operating in a deterministic environment. Although relevant quantitative cost drivers are included, some context-related qualitative factors are not yet included. The model assumes that the information about product structure and part requirements is known and that a preliminary design of the assembly system has been carried out. Practical implications – Production managers are given a quantitative decision tool to properly assess the implementation of continuous material supply policies at an early decision stage, and determine which option is the best, also allowing to explore trade-offs between the alternatives. Originality/value – With respect to previous simplified literature models, this new approach allows to quantify a number of additional factors which are critical for the successful implementation of cost-effective continuous-supply systems, including error costs. No other direct comparison of LS and JIT is available in the literature.