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

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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.
Original languageEnglish
Title of host publication2021 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2021 : 13 - 16 December 2021
Number of pages6
Place of PublicationPiscataway
PublisherIEEE - Institute of Electrical and Electronics Engineers Inc.
Publication date2021
ISBN (Print)978-1-6654-3771-4
ISBN (Electronic)978-1-6654-3772-1
Publication statusPublished - 2021
EventIEEE International Conference on Industrial Engineering and Engineering Management - online, Singapore, Singapore
Duration: 13.12.202116.12.2021

Bibliographical note

Publisher Copyright:
© 2021 IEEE.

    Research areas

  • Engineering - Production systems, Fluctuations, Engineering management, conferences, scattering, industrial engineering, load management