Strategic safety stock allocation in an assembly supply chain network
The supply chain structure of an engine assembly line consists of several complex flows and processes to satisfy the requirements for on time delivery of these products. The difficulty in managing such systems is due to the fact that more than 1000 parts should be available on time in a synchronized manner to start the assembly procedures and deliver the products on time. Due to the supplier lead time variability, quality inspection related delays and other sources of uncertainty, the adherence to a production plan is almost impossible. This results in delays in the production schedule which may result in delays in the delivery of engines to the customer.
The objective of this research project is to improve on time delivery performance of the engine assembly line and develop new inventory policies for the supply chain operations to accommodate the transition to the moving assembly line while keeping the inventory investment at an acceptable level. This will result in savings in operational costs through the elimination of the existing inefficiencies.