The Optimization of Small and Medium Manufacturing Enterprises’ Production Logistics System Based on TOC

Abstract

For small and medium manufacturing enterprise, in particular, multi-species, small and medium volume production enterprises, the management level of production logistics system is the key for the enterprise to utilize sufficiently all production capacity, to reduce the cost, to increase the effectiveness and improve the competitive capacity of product in the market. The problems of production logistics management system in small and medium manufacturing enterprise are analyzed, and based on the principles and procedures of improving the production logistics system performance, optimization design of production logistics management system is done, from factory layout, conveyance system, and balance of production and so on, to improve the management level of production logistics and the operation efficiency and profit. At the same time, according to the real demand of inventory management, the level of inventory management is improved on the basis of the quantitative indention model of the safe inventory and ABC method of inventory logistics. The mechanism of the automatic forecasting and alarming is realized and the upper limit and lower limit of inventory are set up to insure the continuity and stability of the product activity, the overstock and impropriation of the current capital is decreased.KeywordsProduction logisticsTheory of constraints (TOC)Small and medium manufacturing enterpriseValue chain