Constraints Identification And Optimization Of Floor Stock Inventory Based On The Theory Of Constraints

Inventory management is one of the most important parts of the process of manufacturing company management. As one part of the production systems, floor stock inventory has played an important role in production activity; therefore, an efficient floor stock inventory is so important. Inventory shortage will affect the regular production; if there is too much inventory, it will occupy a lot of money and it’s uneasy to manage the production well. At the same time, inappropriate inventory management will also cover the production management problems. The Theory of Constraint(TOC) was first put forward in the book of The Goal by doctor Goldratt. And it had been applied in various areas such as manufacturing, supply chain management, sales and marketing, human resource management, financing and so on. TOC give the point and methods to help the enterprises improve the management, let the enterprises avoid the unnecessary mistakes. TOC has a certain guiding significance for optimization of the floor stock inventory management. This paper has designed a management process help to identify the constraints and optimize the floor stock inventory based on the theory of constraints, because TOC is a series of system theory that works to improve the constraints and broke the constraints. Using the Thinking Process(TP) to analyze it and help to identify the constraints soon, at the same time, using TOC tools to analyze the constraints and help managers make right decision of optimization methods. This paper includes the main contents is as the following:In the 1st chapter, it is introduction part. This part introduces the research background and objective; point the importance of floor stock inventory management. Firstly, review the related research in inventory management, floor stock inventory management and TOC that both at home and abroad. Secondly, summarize the previous studies and point their limitations. Then put forward this paper’s contents, technology roadmap and innovations base on previous studies.The 2nd chapter is the process design of inventory optimization based on TOC. Firstly, it describes the characteristic of mixed flow production line inventory; it introduces the formation and development of TOC, and the architecture of TOC. Then, design the process of constraints identification and optimization of floor stock inventory management based on the characteristics of both in management of floor stock inventory and TOC.The 3rd chapter is constraints identification in floor stock inventory based on TOC. It tells us the concept of constraints, ways of constraints identification and the process of identification. In this chapter, it will introduce how to use TOC tools in the process of constraints identification.The 4th chapter is constraints optimization floor stock inventory based on TOC. It will introduce the process of optimization firstly, and then introduce the ways how to analyze the core problem by some tools, and at last put forward the solution based on TOC.The 5th chapter is case study—for instance of A company assembly lines inventory management. It takes the methods above and applies in A company. It elaborates the process how the goal assembly line identifies and breaks the constraints.The 6th chapter is to sort out the full text summary of the research described in this thesis, limitations and innovations, and make the prospects for future research.