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March 14, 2026Journal of the Korean society for quality managementOpen Access

A Case Study on the Aggregate Planning of Multi-product Small-batch Production Facilities: Focusing on System Dynamics Simulation Modeling

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Authors

SLSeungdoe LeeSKSang Hoon Kim

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Overview

Case study demonstrates inventory management and optimal production quantity in multi-product facilities, suggesting improved planning strategies.

Key Points

  • This research aims to guide operation managers in optimizing daily production for multi-product small-batch production facilities.
  • Close observation of subcontractor practices
  • Development of a mathematical model specific to the subcontractor
  • Implementation of system dynamics simulation modeling
  • Execution of multiple simulation runs with actual data from the firm
  • Inventory holding costs negatively impact total profit from customer-owned materials
  • Running costs limit production capacity in small batches
  • Simulation shows the balance between maximum production and profit potential
  • The maximum allowable stock level is derived from optimal daily production findings

Cite This Study

Lee et al. (2022) studied this question.

synapsesocial.com/papers/69b4fbeab39f7826a300c71chttps://doi.org/10.7469/jksqm.2022.50.1.153
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