| This simulation study explores and compares the potential benefits of three work-in-process inventory control systems: Material Requirement Planning, which is based on a push system; Just-In-Time, which is based on a pull system; and the Theory Of Constraints, which is based on a hybrid push-pull system. Although MRP, JIT, and TOC management philosophies have several aspects in common, the three are based on different WIP inventory control methods. The statistical analysis associated with the study was based on data gathered in three computer simulated flow shop assembly line environments. Hypotheses concerning the dependent variables of production performance measurements were established. The independent variables were controlled and manipulated for each of the models. From the statistical analysis, a conclusion was drawn as to which management method would afford the operation the optimum results. While inventory has traditionally been considered and is currently being shown as an asset from an accounting point of view, it is immoderately obvious from the findings in this study, that excess work-in-process inventory, over and above the minimal requirements for production, will have a negative effect on the performance measurements evaluated in this study. |
