A system to determine the optimal work-in-progress inventory stored in interoperation manufacturing buffers

Abstract

Continuous cost reduction is a subject of interest for almost every production company. The cost reflects the competitiveness and sustainability of the business. Many company costs are linked to the effectiveness of production. One such cost is the work-in-progress (WIP) inventory cost. The present article deals with the design of a system for calculating the optimal WIP inventory stored in a manufacturing buffer, which, in the long term, provides the lowest costs. The main goal of the article is to design a new system that allows for the calculation of the optimal capacity of interoperation manufacturing buffers and thus the calculation of the optimal WIP inventory, which influences the lead time and cost. The newly designed system consists of algorithms that describe various steps, many of which use mathematical models. The individual blocks of algorithms are described, and the proposed system is verified and validated by simulation of the production line in the automotive production company.