Production Forecast And Inventory Optimization Study Of A Electronics Manufacturer S Company By The Simulation System EXTEND

Inventory control decision is one of the key topics of modern manufacturing industries. Inventory reduction can help enterprise greatly reduce capital investment, facilitate the cash flow, maximize total profit while at the same time strengthen coordination among different functions, improve operation level, all of which led to sharpened core competitiveness.The objective of inventory control is to strike a balance between excess inventories and too little inventory, in order to have minimum inventory under a certain customer satisfaction level with least stock-outs. The dynamics of demand, the uncertainty in supply chain and the constraints residing in production capacity, all make inventory control more and more difficult.This paper is a case study of Sony Electronics (Wuxi) Co Ltd. It focuses on two important dimensions of inventory problem, i.e., production forecast and inventory control method. The paper integrate system simulation technology with simulation development environment EXTEND, in constructing a simplified modeling system of the production system and supply chain system. The production forecast process is studied and using"smooth production"and"multi-stage hedging point"methodology in industrial engineering, some production control algorithms are proposed and experimented to obtain the optimal policy and parameters for the research objective. This paper presents the ways in which simulation study differs from the more traditional methods of problem solving and a discussion of the findings and potential drawbacks to the approach are also provided.