Managing and Modelling Financial Flows and Material Flows
Most production and inventory modelling has traditionally focused on the management of the flow of materials: raw materials, components, assemblies, and finished products. The concern is with the management of the physical inventory and the planning and scheduling of the movement of parts and products through manufacturing and distribution. However, it has long been recognized that the movement and processing of the physical product requires information in order to be managed. So in recent years there has been an increasing tendency to include in the model the representation of information flow and the way in which information flow is linked to material flow. This is particularly important in modelling various types of multistage inventory management systems, such as base stock, Kanban, or CONWIP, as information flow and marterial flow are tightly coupled.
KeywordsCovariance Shipping Expense Dispatch
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