An analysis of stocking strategy in a multi-echelon assembly system by computer modelling

The business problem described is typical of the professional electronics industry, where product customisation is achieved by assembly to order, but the relatively short delivery lead times demanded by the market imply a high degree of speculation both in material procurement and manufacturing. The research objectives were to establish a methodology by which the influence of buffer stocks within the above environment could be observed, with particular reference to their contribution to delivery performance. [Continues.]