Anticipatory Inventory Management For Realizing Robust Production Processes In Engineer-To-Order Manufacturing: A Modeling Approach

Abstract

At ever shorter intervals, manufacturing and processing companies of all industries are confronted with external or internal disruptions and crises that need to be managed. Consequently, a corporate focus on robust supply chains and processes is essential. At the same time, crises and their impact on supply chains cannot be predicted. To be able to act anticipatively, it is necessary to link product and production system design to take suitable measures to safeguard production at an early stage. In this context, a monetary conflict of objectives arises concerning when a company should position itself robustly and when it is sufficient to react flexibly to disruptions. The production planning and control (PPC) task inventory management is an essential lever for realizing robust order fulfilment processes. Inventory management aims to ensure that production and assembly within the company are supplied in the right quantities and without lateness. In particular, companies that operate according to the engineer-to-order strategy (ETO) face specific challenges in dimensioning stocks for materials or components - for example, due to the low level of standardization or lack of supplier diversity. This paper presents an approach for anticipatory inventory management using product portfolio characteristics. A new modeling approach for dimensioning safety stocks under the increasing influence of crises is also developed and integrated into the process.