A real-time inventory model to manage variance of demand for decreasing inventory holding cost

Abstract

Recent production planning studies focus on real-time planning and dynamic scheduling to increase utilization and robustness. In these studies, real-time data is used for planning, but in most of them manufacturing systems and planning methodology are not transformed into a real-time system approach. The novel aspect of this study is the presentation of a model in which the manufacturing system has been designed as a real-time system that consists of real-time planning activities working with real-time data, and eliminating the safety stock. (C) 2016 Elsevier Ltd. All rights reserved.