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Tuesday, June 7, 2005 - 2:30 PM
EMP052.3

Adaptive Inventory Management for Cost Reduction in Network-Centric Manufacturing Environments

M. D. Mills Harris, C. Saygin, A. Soylemezoglu, University of Missouri-Rolla, Rolla, MO; K. M. Etzkorn, P. Freeman, The Boeing Company, St. Louis, MO

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Summary:

Planning, scheduling, and control of manufacturing operations in large-scale systems, such as aerospace manufacturing facilities, are inherently complicated due to the complexity of products. The research shows that hierarchical modeling of such systems leads to rigid system architectures such that it simply becomes incapable of responding to changing circumstances in a timely and cost-effective fashion. Distributed systems architectures facilitate agility, responsiveness, and reconfigurability, which are the key for survival in today’s market since the focus is on high product variety, low volumes, low cost, high quality, and on-time delivery. In this work, a manufacturing environment that possesses such features is called a network-centric manufacturing environment, which incorporates a dynamic network of self-organizing, autonomous units that operate, collaborate, cooperate, and compete upon basic principles of decentralization, participation, and coordination in order to accomplish the goals set at system level.

In this study, an adaptive inventory management model founded on Auto-ID-based state and event data for tracking and dispatching of time and temperature sensitive materials in an aerospace manufacturing facility is presented. The impact of integrating Auto-ID technologies with inventory control on the shop floor is discussed. This study compares various traditional inventory models with the adaptive inventory management model proposed in this work on the basis of cost savings, inventory and waste reduction, inventory turns, and decision making complexity. The validity of the proposed model is demonstrated in a simulation environment, which also demonstrates the overall benefits and effectiveness of Auto-ID technologies in providing low cost manufacturing solutions, reducing inventory levels, and preventing excessive waste for typical aerospace manufacturing environments.