liu.seSearch for publications in DiVA
Change search
ReferencesLink to record
Permanent link

Direct link
Analysis of the effect of commonality in multi-level inventory systems applying MRP theory
Nanchang University, People's Republic of China.
Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
2004 (English)In: International Journal of Production Economics, ISSN 0925-5273, Vol. 90, no 2, 251-263 p.Article in journal (Refereed) Published
Abstract [en]

Commonality, i.e. using the same type of component in different locations of product structure trees, is frequently encountered in manufacturing industries. It has long been known that using a common component can reduce the cost of safety stock. Basically, taking commonality into account can reduce the inventory level, shorten the time for reaching the market, decrease the set-up time, increase productivity, and improve flexibility. However, using the same component in different locations might require that the component is made more flexible and, therefore, more expensive as compared to choosing tailor-made items for its respective locations. The manufacturing cost of commonality items may therefore be much higher because of its greater number of functions. So, there may be a balance to be struck between the value of the advantage of commonality, and the cost of its disadvantage. This paper focuses on the effect of commonality in multi-level production-inventory systems, especially assembly systems. The basic balance equations of MRP theory, using input-output analysis together with the Laplace transform, are used for comparing the cases when commonality is disregarded, on the one hand, and when commonality is taken into account, on the other. Applying the net present value as the objective function, conclusions are derived in the form of conditions for when commonality is recommended, and when not. © 2003 Elsevier B.V. All rights reserved.

Place, publisher, year, edition, pages
2004. Vol. 90, no 2, 251-263 p.
Keyword [en]
Commonality, Input-output analysis, Laplace transform, Material requirements planning (MRP), Production-inventory system
National Category
Engineering and Technology
URN: urn:nbn:se:liu:diva-45683DOI: 10.1016/S0925-5273(03)00208-1OAI: diva2:266579
Available from: 2009-10-11 Created: 2009-10-11 Last updated: 2012-02-10

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Grubbström, Robert W.
By organisation
Production EconomicsThe Institute of Technology
In the same journal
International Journal of Production Economics
Engineering and Technology

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 45 hits
ReferencesLink to record
Permanent link

Direct link