Abstract
Modern concepts in production management argue that it would be possibly preferable to instal a production rate which is fully synchronized with those rates of other production stages in the same firm or other firms. Thus, between the supplier and the customer of a finished or semi-finished product no inventory costs have to be taken into account, if the coordination will be perfect and JIT(Just-In-Time)-production takes place. Within a firm the synchronization may be a matter of planning and organization, and the kanban-principle is one possible result, though inventory is not really zero, but there exists always a buffer stock. As soon as two different firms are concerned, there are also different planning processes, and the advantage of the customer may become simultaneously the disadvantage of the supplier.
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© 1991 Springer-Verlag Berlin · Heidelberg
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Reese, J. (1991). Trade-off between Production and Inventory Costs with Respect to a Given Demand Situation. In: Fandel, G., Zäpfel, G. (eds) Modern Production Concepts. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-76401-1_17
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DOI: https://doi.org/10.1007/978-3-642-76401-1_17
Publisher Name: Springer, Berlin, Heidelberg
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