| The automotive part is an important link of the automotive industry. Itdetermined the development level of entire automotive industry. Based onlong term strategic cooperation, automotive manufacturer and automotivepart company constitute a network of car industry-supply chain to achievethe mutual benefit of the entire supply chain. Under the fierce marketcompetition, automotive manufacture implement the JIT production, whichrequire parts supplier to supply parts just in time and distribute the partsdirectly to production line, thereby reduce the inventory cost. JIT put strictdemand on supply chain to maintain stable while can make quick response.The automotive JIT production model increased the requirement ofparts company service level. Automotive part company had to maintainhigh inventory to meet the JIT production model, thereby increaseinventory cost. The production plan is the source of inventory inmanufacture industry. In the face of client random demand combine withthe multiple variety and small batch production mode, formulatingreasonable production plan has significant meaning in inventory decrease,fast response to market demand. However, automotive parts companywhen formulate production plan based merely on experience and simplestrategy, which is quite subjective and not reasonable. Production planninghas direct influence on production, material procurement and inventorylevel. Therefore, how to formulate production and inventory strategy underreasonable forecast of automotive demand, and maintain high customerservice level under reasonable cost and inventory is a quite urgent problemfor auto parts enterprises. This paper analyzed the business characteristics of auto partsenterprise, combined the research background of the multiple variety andsmall batch production mode in mixed assembly line, based on the targetcompany’s existing order-driven production model. This paper formulateda general model and method to determine reasonable safe stock andexecution and scheduling of production activities to optimize inventorylevel. This paper used Lingo software to find the optimal productioninventory plan and demonstrated strong practical significance. Finally thispaper used Arena simulation software to simulate production inventorysystem of A company, the result convinced that the optimized productionplan effectively decreased inventory level and proved to be feasible andrational. |
