Buffer Optimization and Reduction

Optimizing Work-In-Progress (WIP) levels ensures smooth production without excess inventory. Companies must balance cost, lead time, and efficiency to prevent disruptions.

Challenges

• Excessive buffers: How can inventory levels be reduced without increasing disruptions?
• Insufficient buffers: How can WIP be optimized to prevent bottlenecks?
• Cost vs. efficiency trade-offs: How much inventory is necessary to balance cost and performance?

How Simulation Helps

• Determines the optimal buffer sizes based on production dynamics.
• Simulates trade-offs between inventory costs and system stability.
• Identifies opportunities to reduce WIP while maintaining throughput.

Expected Results

• Lower inventory costs and reduced capital tied up.
• Optimized space utilization, minimizing square meter needs without risking production delays.
• Optimized WIP levels to ensure smooth flow.
• Reduced lead times and improved production stability.