The role of inventory banks in flow-line production systems

Abstract

Many production managers of flow-line systems, such as in the steel and metal processing industries, observe the high levels of in-process inventories. They feel that it should be possible to reduce these inventories; however, before doing so it is necessary for them to understand their function. Although the general rule that inventories exist because of imbalance in supply and demand at a point within the system is true, it is necessary to show more precisely how such an imbalance might arise in single-product systems due to variability in processing times at the stations, or interruptions in production due to breakdown and subsequent repair of stations. Quantitative results have been obtained which indicate how such factors as the number, location and capacity of inventory bank, affect the system production rate. These results enable system designers and operators to check whether their systems could be improved.