Estimating Flexibility Requirements in a Demand-Driven Lean/JIT Environment

Authors:
Peter Nielsen;Kenn Steger-Jensen
Affiliations:
Department of Production, Aalborg University, Aalborg East, Denmark 9220;Department of Production, Aalborg University, Aalborg East, Denmark 9220
Venue:
IEA/AIE '08 Proceedings of the 21st international conference on Industrial, Engineering and Other Applications of Applied Intelligent Systems: New Frontiers in Applied Artificial Intelligence
Year:
2008

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Abstract

Demand-driven JIT manufacturing is based on the assumption of a level stable demand rate. This is however not the reality experienced by most companies. To handle fluctuations from a level stable demand rate, the manufacturing system needs flexibility. This paper presents a method for using estimated multivariate density distributions of periodic demand rates to establish when flexibility is needed and how much. The method is applied to data from a JIT manufacture finding that the company in question had an unstable demand rate and needed a great deal of flexibility if a low delivery time should be guaranteed.