INVENTORY CONTROL AND COST TRANSITION FOR OPTIMUM TRANSITION POLICY

Every manufacturing industry has put in continuous efforts for its survival in the current impulsive and competitive economy. In order to handle the critical situation, manufacturers are trying to implement new and innovative techniques in their manufacturing process by making it more effective and efficient. The results revealed that the status of Lean Manufacturing (LM) implementation in still in thriving stage. This paper will further assist the organizations to improve its process, align it to the requirements of its customers and relentless contribution to manufacturing sector to enhance productivity, quality and competitiveness is immense. Organization that adopt lean manufacturing tends to change from push to pull, this type of transition can be done by adopting this change from a single stage processing system to a multistage processing system, during this phase due to it may result in building the kanban inventory, at the same time the plant need to process the regular customer orders, it may affect the capacity of the workstation, and may result in the backlog and may the customer lead times. For this we can add more resources to the plant, or we can defer some customer orders, in this paper we are building up two models one for inventory control and other for cost transition and thereby we can find the optimum transition policy