Trade-off between Production and Inventory Costs with Respect to a Given Demand Situation
Research output: Contributions to collected editions/works › Article in conference proceedings › Research
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Trade-off between Production and Inventory Costs with Respect to a Given Demand Situation. / Reese, Joachim.
Modern Production Concepts: Theory and Applications; Proceedings of an International Conference, Fernuniversität, Hagen, FRG, August 20-24, 1990. ed. / Günter Fandel; Günther Zäpfel. Berlin : Springer, 1991. p. 276-289.Research output: Contributions to collected editions/works › Article in conference proceedings › Research
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TY - CHAP
T1 - Trade-off between Production and Inventory Costs with Respect to a Given Demand Situation
AU - Reese, Joachim
PY - 1991/1/1
Y1 - 1991/1/1
N2 - 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.
AB - 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.
KW - Management studies
KW - Production Rate
KW - Unit Cost
KW - Optimum Rate
KW - Setup Cost
KW - Inventory Cost
UR - https://www.mendeley.com/catalogue/de97360a-767d-3b9e-b972-761926048575/
U2 - 10.1007/978-3-642-76401-1_17
DO - 10.1007/978-3-642-76401-1_17
M3 - Article in conference proceedings
SN - 3-642-76403-7
SN - 978-3-642-76403-5
SP - 276
EP - 289
BT - Modern Production Concepts
A2 - Fandel, Günter
A2 - Zäpfel, Günther
PB - Springer
CY - Berlin
ER -