The changing relationship between production and inventory examined in a concurrent engineering context

Abstract

This paper examines some of the changes that are occurring in manufacturing companies and in the market in which they operate. Changes include the product design process, reduction in product design time, new technology, new materials and production methods, the availability of better quality data, organisation change including changes in techniques and tools used for planning and control. Changes in the market include increased competitiveness, the need for shorter lead times, shorter product life cycles, pressures on costs and the need for greater responsiveness. The paper discusses these among other changes and suggests that the relationship between production and inventory needs to be reviewed to determine whether and how it should respond. A generalised concurrent engineering context is proposed within which it is suggested that production and inventory planning and control should be included.