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Optimization of Work-in-Progress Inventory of Bottleneck Process: A Case Study of Passenger Car Industry

Author

Listed:
  • S.G. Mani

    (S.G. Mani is Research scholar at International Management Institute (IMI), New Delhi, 110016, India. E-mail: sganeshmani@gmail.com)

  • Bhimaraya Metri

    (Bhimaraya Metri is Professor and Dean (Academics) at International Management Institute (IMI), New Delhi, 110016, India. E-mail: metri@imi.edu)

Abstract

The manufacturing of motor vehicle involves series of processes starting from welding steel sheets to form a welded body, painting and assembling sequentially to finally give it a sellable form. The nature and the intricacy involved in each processes determine the rate of production. Also, factors such as machine/equipment breakdowns result in alteration of the production rates further affecting the smooth manufacturing flow. This case study discusses how mismatches in the production rates (designed and altered) in a high-speed conveyors of various processes (starvation/blockages) could be minimized by ensuring optimized buffer storages by building WIP and minimizing risk of demand loss and optimizing inventory costs keeping the productivity also into consideration.

Suggested Citation

  • S.G. Mani & Bhimaraya Metri, 2014. "Optimization of Work-in-Progress Inventory of Bottleneck Process: A Case Study of Passenger Car Industry," Global Business Review, International Management Institute, vol. 15(4_suppl), pages 49-58, December.
    • Handle: RePEc:sae:globus:v:15:y:2014:i:4_suppl:p:49s-58s
    DOI: 10.1177/0972150914550547
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    References listed on IDEAS

    as
    1. Marvin B. Lieberman & Lieven Demeester, 1999. "Inventory Reduction and Productivity Growth: Linkages in the Japanese Automotive Industry," Management Science, INFORMS, vol. 45(4), pages 466-485, April.
    2. Marvin B. Lieberman & Shigeru Asaba, 1997. "Inventory Reduction and Productivity Growth: A Comparison of Japanese and US Automotive Sectors," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 18(2), pages 73-85.
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