Material Control System for the Manufactured Housing Industry

A manufactured home is a factory-built house constructed in a controlled factory environment according to federal standards known as the Department of Housing and Urban Development (HUD) code. The manufactured home shares approximately 20% of the total housing units in the United States and plays an important role in providing affordable housing. However, in terms of material engineering, advanced techniques are scarcely used in the manufactured housing (MH) industry. The current material flow and control systems are characterized as independent demand systems that are based on the personal experience of the material managers. Although independent inventory control systems are widely used in many manufacturing industries, these systems lead to a large amount of inventory and have many drawbacks for the MH industry. On the other hand, dependent inventory systems can reduce unfavorable inventory levels using new techniques and present substantial benefits for the MH industry. This paper applies lean inventory control systems and supply chain management techniques to the current systems of the MH industry and proposes a new framework of material control systems as one of the system management tools.