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Applicability of demand-driven material requirements planning in a refrigerated display cabinet manufacturing environment.
Mukuchira, Tendai
Mukuchira, Tendai
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Abstract
Globalisation and highly competitive markets characterised by shorter lead times and changing customer demands have forced manufacturers to evolve continuously, improve and be more agile with the capability to offer customised products. Various methods for production planning and inventory control, such as push and pull, Just in Time, Kanban, material requirements and enterprise resource planning, have been used in conditions characterised by uncertainty and specific volume production to plan, control, and monitor production. These methods have benefits and drawbacks, prompting the development of hybrid approaches that allow advantages to be drawn from these antagonistic approaches. The refrigerated display cabinet manufacturing environment is characterised by varying and unpredictable demand for customised refrigerated and heated display cabinet products. The primary challenges the case company faces in this complex environment include inventory stockouts, overstocks, high inventory costs, longer lead times and overall system instability resulting in
inefficiencies. This study aimed to develop a methodology for implementing demand-driven material requirements planning in a refrigerated display cabinet manufacturing environment and evaluate its applicability in improving inventory management and customer lead time using simulated data from an existing enterprise resource planning system. The research involved a case study analysis to establish the causes for the inefficiencies and current performance using semi-structured interviews, observations, and enterprise resource planning data analysis. A simulation study incorporating a demand-driven material requirements planning model was designed to determine the applicability and measure the impact of adopting demand-driven material requirements planning. It was compared to the current inventory planning methods used by the case study company by analysing the simulated model’s on-hand stock and delayed orders. The results highlighted the capability of demand-driven material requirements planning to improve inventory management and system stability by
preventing inventory stockouts and overstocking and reducing inventory levels and costs.
Description
Submitted in partial fulfilment of the requirement for the degree Magister of Engineering: Engineering Management (MEEM18) in the Department of Industrial Engineering within the Faculty of Engineering and the Built Environment at the Tshwane University of Technology.
Date
2023-09-01
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Tshwane University of Technology
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Keywords
Demand-driven material requirements planning, Simulation, Inventory management, Enterprise resource planning, Methodology
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CC0 1.0 Universal