Enhancement of Theory of Constraints replenishment using a novel generic buffer management procedure

Abstract

Managing a distribution system requires the right inventory in the right place at the right time. A Theory of Constraints replenishment solution is presented to aggregate inventory buffers at the central warehouse in plant and change the mode of operation from push to pull. The solution is powerful, but the optimal amount of buffer remains undetermined. In Theory of Constraints, choosing a specific buffer size is not crucial if the buffer is accurately monitored in a timely manner. Accordingly, Theory of Constraints is offered a buffer management approach for monitoring the buffer. Such buffer management is feasible and effective but is insufficiently rigorous. This paper elucidates a generic buffer management procedure, based on the concept of Theory of Constraints buffer management that rigorously defines a method of monitoring to size and adjust the buffer. An example demonstrates the feasibility of the proposed generic buffer management procedure.