Trade-off between Production and Inventory Costs with Respect to a Given Demand Situation

Research output: Contributions to collected editions/worksArticle in conference proceedingsResearch

Authors

Modern concepts in production management argue that it would be possibly preferable to instal a production rate which is fully synchronized with those rates of other production stages in the same firm or other firms. Thus, between the supplier and the customer of a finished or semi-finished product no inventory costs have to be taken into account, if the coordination will be perfect and JIT(Just-In-Time)-production takes place. Within a firm the synchronization may be a matter of planning and organization, and the kanban-principle is one possible result, though inventory is not really zero, but there exists always a buffer stock. As soon as two different firms are concerned, there are also different planning processes, and the advantage of the customer may become simultaneously the disadvantage of the supplier.
Original languageEnglish
Title of host publicationModern Production Concepts : Theory and Applications; Proceedings of an International Conference, Fernuniversität, Hagen, FRG, August 20-24, 1990
EditorsGünter Fandel, Günther Zäpfel
Number of pages14
Place of PublicationBerlin
PublisherSpringer
Publication date01.01.1991
Pages276-289
ISBN (print)3-642-76403-7, 978-3-642-76403-5
ISBN (electronic)978-3-642-76401-1
DOIs
Publication statusPublished - 01.01.1991
Externally publishedYes

    Research areas

  • Management studies - Production Rate, Unit Cost, Optimum Rate, Setup Cost, Inventory Cost