Using inventory related performance measures in the analysis of a production/inventory flexible manufacturing system

Abstract

To survive in the ever-increasing competition in the market, manufacturing firms must adopt the latest technologies available. Flexible manufacturing systems (FMS) provide an effective solution to the problem, but its performance should be continually enhanced to remain competitive in the market. The aim of this work was to identify the effect of routing flexibility and system load conditions on the performance of FMS using both production and inventory related performance measures. ARENA simulation software was used to model and study the system. (R, r) inventory control policy was applied to the production/inventory system. Routing flexibility was found to have a significant effect on all the performance parameters, with maximum improvement of performance observed at increase of level from 0 to 1. It was further observed that the system load condition does not have a significant effect on any of the performance measure. The FMS showed slightly improved performance when the system was fully balanced. It can be concluded that the inventory related performance measures give comparable results to that of production related performance measures.