DYNAMIC PULL REPLENISHMENT BUFFER MANAGEMENT, CASE: BUFFER INVENTORY MANAGEMENT

Abstract

The main goal of this Master Thesis was to develop a dynamic, flexible and easy to control inventory control program. Another purpose was to compare the completed inventory control program to commonly used methods. The used production control method is Pull method.

The tools which were chosen for comparison are based on the following theories: the Periodic Review Method, the Reorder Point Method and the Theory of Constraints. The comparisons base on five different data and they are conducted according to the costs which result from the use of different data and actions of the tools. The various situations in demand and replenishment time were simulated with the data.

To get a more realistic view as well as results which are easy to compare, costs were chosen to be the compared quantity. The most profitable tool to control inventory, according to this study, was the tool which is based on the Theory of Constraints. It was over 30 percent cheaper than the second one which bases on Reorder Point Method.

To conclude with, it can be stated that it would be economically profitable to change the inventory control method. Hence an enhanced service level would be reached.