The use of Theory of Constraints on the raw material inventory management improvement: Rubber foam industry, Company A, for example

• Main Authors: Tsung-Ming Tsai, 蔡宗洺
• Other Authors: 李文瑞
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/19945750853790804238

碩士 === 崑山科技大學 === 企業管理研究所 === 100 === This study applies the Theory of Constraints, proposed by Dr. Goldratt, in the raw materials management of a company. It promotes the concept of pull-based supply chain and applies to improve the stock management of individual company. This study, based on Theory of Constraints, changes the supply chain from the traditional one, “push-based” to the “pull-based” one, which is demand-driven. Then, according to the historical stock data of case company, the study calculates and evaluates the possibility of Theory of Constraints to see if it could improve the stock management. The results shows it could effectively meet the high demand of uncertain market. In order to avoid the inaccurate demand forecast which may cause the stock out of control, the company has to use the pull-based mode and adjust the dynamic buffering. By the historical data of the case company, this study sets up twenty-five conditions for trial tests. Apart from using the weekly demand as the reference of order quantity, it adjusts the dynamic buffering as well. When the stock level exceeds the maximum limit, it would decrease the demand of that week in order to balance the odds immediately. On the other hand, if the stock level is under the minimum limit, it would not adjust the order quantity. It orders only based on the demand of that week to balance the odds after four-week observation. This study proves that when the case company facing the unusual fluctuation, the stock level could meet the market demand rapidly if the company proposes the effective improvement and adjustments. It also could release the pressure of stock and cost control and improve the ability to work resourcefully.