TY - CHAP

T1 - Logistical Potentials of Load Balancing via the Build-up and Reduction of Stock

AU - Heuer, Tammo

AU - Maier, Janine Tatjana

AU - Busse, Tim D.

AU - Schmidt, Matthias

AU - Nyhuis, Peter

N1 - Publisher Copyright: © 2021 IEEE.

PY - 2021

Y1 - 2021

N2 - Fluctuations in demand pose a significant challenge for manufacturing companies. As fluctuations increase, an imbalance between capacity availability and capacity requirements more likely occurs. This can lead to scattering load in production and consequently result in low logistical performance. Capacity synchronisation must be carried out to reconcile load and capacity. On the one hand, available capacity can be adjusted to fit the scattering load using capacity flexibility. However, capacity flexibility is limited. On the other hand, load balancing can be carried out to achieve a lower load variation. This can be done, for example, by building up and reducing stock. During periods of low load, stock orders are generated and higher stocks are built up to keep utilisation high. At times of high demand, stock is reduced by releasing fewer stock orders to ensure a stable operating state of the production system. This balances utilisation in the production system and keeps the work in process and throughput times at the planned level. Therefore, this paper examines the logistical potential that results from load flexibility through finished goods stock.

AB - Fluctuations in demand pose a significant challenge for manufacturing companies. As fluctuations increase, an imbalance between capacity availability and capacity requirements more likely occurs. This can lead to scattering load in production and consequently result in low logistical performance. Capacity synchronisation must be carried out to reconcile load and capacity. On the one hand, available capacity can be adjusted to fit the scattering load using capacity flexibility. However, capacity flexibility is limited. On the other hand, load balancing can be carried out to achieve a lower load variation. This can be done, for example, by building up and reducing stock. During periods of low load, stock orders are generated and higher stocks are built up to keep utilisation high. At times of high demand, stock is reduced by releasing fewer stock orders to ensure a stable operating state of the production system. This balances utilisation in the production system and keeps the work in process and throughput times at the planned level. Therefore, this paper examines the logistical potential that results from load flexibility through finished goods stock.

KW - Engineering

KW - Production systems

KW - Fluctuations

KW - Engineering management

KW - conferences

KW - scattering

KW - industrial engineering

KW - load management

UR - http://www.scopus.com/inward/record.url?scp=85125384689&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/4ab2b86c-a6a7-391c-8b1e-a77d1b85b40d/

U2 - 10.1109/IEEM50564.2021.9673063

DO - 10.1109/IEEM50564.2021.9673063

M3 - Chapter

SN - 978-1-6654-3771-4

T3 - 2021 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2021

SP - 264

EP - 269

BT - 2021 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2021

PB - IEEE - Institute of Electrical and Electronics Engineers Inc.

CY - Piscataway

T2 - IEEE International Conference on Industrial Engineering and Engineering Management

Y2 - 13 December 2021 through 16 December 2021

ER -