Proposing a non‐traditional ordering methodology in achieving optimal flexibility with minimal inventory risk

Abstract

In this article a proposal of a non‐traditional methodology in achieving optimal flexibility with minimal inventory risk will be applied. The non‐traditional methodology will be able to achieve different levels of the production schedule changes with maximum flexibility and minimal inventory risk. The basic principle, implementation methodology as well as its effectiveness and benefits will be discussed. In order to overcome the risk of achieving flexible manufacturing or enhancing supply chain management, this article will address issues on methods to accommodate production sequence changes which include total production quantity change in a short lead time. The study uses the Family Ordering System methodology which has proven capable in solving manufacturing flexibility issues by reducing the total manufacturing lead time. Family Ordering System provides the flexibility of model changes and reduces production line stoppage as a result of part shortage by carrying extra inventory of unique parts.