INVENTORY ISSUES IN INCREMENTAL FMS IMPLEMENTATION

In recent years, numen,us studies have demonstrated convincingly that impressive benefits can be obtained by the adoption of flexible manufa cturing systems (FMSs). To obtain the benefits of an FMS requires the development of a completely integrated system. However, FMS implementa tions are frequently done incrementally through the introduction of su bsystems such as flexible machining centers into an existing conventio nal system. The purpose of this research is to investigate some of the operational issues associated with the introduction of a CNC (compute r numerically controlled) machine tool into a conventional system. The primary objective of the present study is to explore the relative eff ect; on inventory holding cost of installing a single CNC at different locations within three different system configurations. Additionally, the study examines the sensitivity of these impacts to changes in (1) System utilization; (2) the ratios of setup times to run times in the conventional work centers; and (3) the rates of increase in holding c osts for parts as they move through the system. Results indicated that , in general, introduction of a CNC into an otherwise conventional sys tem reduces inventory holding cost for the system as a whole. However the degree of this reduction varies depending on the position of the C NC in the system. In some cases the reduction in inventory holding cos t is substantial, while in other cases it is relatively small.