Department of Economics and Business Economics

Simon Emde

Optimally locating in-house logistics areas to facilitate JIT-supply of mixed-model assembly lines

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

  • Simon Emde
  • Nils Boysen, Friedrich Schiller University Jena

In modern-day production systems, ever-rising product variety poses a great challenge for the internal logistics systems used to feed mixed-model assembly lines with the required parts. As an answer to this challenge many manufacturers especially from automobile industries have identified the supermarket-concept as a promising part feeding strategy to enable flexible small-lot deliveries at low cost. In this context, supermarkets are decentralized in-house logistics areas in the direct vicinity of the final assembly line, which serve as intermediary stores for parts. Small tow trains are loaded with material in a supermarket and deliver parts Just-in-Time to the stations lying on their fixed route. This paper discusses the general pros and cons of the supermarket-concept and treats the decision problem of determining the optimal number and placement of supermarkets on the shop floor. A mathematical model is proposed, an exact dynamic programming algorithm presented, and the validity of the proposed approach for practical purposes as well as the trade-off resulting from fixed installation and maintenance cost is investigated in a comprehensive computational study.

Original languageEnglish
JournalInternational Journal of Production Economics
Pages (from-to)393-402
Number of pages10
Publication statusPublished - 1 Jan 2012
Externally publishedYes

    Research areas

  • Just-in-Time, Material supply, Mixed-model assembly lines, Tow trains

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