Issue: 2020/Vol.30/No.2, Pages 29-37
PERSONALISATION OF PRODUCTION IN THE ERA OF INDUSTRY 4.0 AS A CHALLENGE FOR INVENTORY MANAGEMENT IN SMALL AND MEDIUM-SIZED PRODUCTION ENTERPRISES
Sandra Grabowska
Cite as: S. Grabowska. Personalisation of production in the era of Industry 4.0 as a challenge for inventory management in small and medium-sized production enterprises. Operations Research and Decisions 2020: 30(2), 29-37. DOI 10.37190/ord200202
Abstract
Industry 4.0 is the result of the development of cyber-physical generation systems as a part of the fourth industrial revolution. Industry 4.0 sets new areas for change in the sphere of production and management but also influences various aspects of society. Industry 4.0 is focused on continuous improvement of production processes. This is a turnaround in the production control methodology, as the growing expectations of customers in the modern market cause, along with the increase in production efficiency, customisation of the product. In this trend, the customer decides about the product, personalising it as much as possible and in the best possible way. These are new challenges in the field of inventory management. The article aims to present a method of calculating the optimal amount of the cost of a rotating stock in a production enterprise with an unevenly distributed demand, which is the case with personalised orders.
Keywords: inventory, personalisation, customisation, Industry 4.0, small and medium-sized enterprises (SMEs)
Received: 23 April 2019 Accepted: 3 July 2020