Re-manufacturing firms must obtain products that have failed functionally. Acquiring cores - failed products - requires reverse logistics activities, and these activities, in turn, require significant modifications to traditional production planning and control systems. Re-manufacturing firms commonly serve a number of smaller niche markets, and use diverse product offerings and strategies to serve these often dissimilar markets. However, even serving smaller niche markets is profitable; 78% of the firms responding had sales in excess of $21 M per year. Firms reported re-manufacturing, on average, over 1400 product types and over 50,000 part types per facility. The majority (80%) of re-manufacturing firms uses a mix of make-to-stock (MTS), make-to-order (MTO), and assemble-to-order (ATO) strategies, within a single re-manufacturing facility. Only one-fifth of firms surveyed reported having pure MTS, MTO or ATO strategies. Further, almost a quarter of the firms report that the mix of MTS, MTO, and ATO changes based on market conditions. In order to manage this amount of product diversity many re-manufacturing firms surveyed reported using hybrid PP & C systems. These systems included customized material requirements planning (MRP) Systems, combined with Just-in-Time (JIT) techniques such as Kanbans, Theory of Constraints (TOC) techniques such as drum-buffer-rope, and classic inventory control techniques (reorder point and economic order quantity); although not all re-manufacturers used all techniques.
Re-manufacturing firms must obtain products that have failed functionally. Acquiring cores - failed products - requires reverse logistics activities, and these activities, in turn, require significant modifications to traditional production planning and control systems. Re-manufacturing firms commonly serve a number of smaller niche markets, and use diverse product offerings and strategies to serve these often dissimilar markets. However, even serving smaller niche markets is profitable; 78% of the firms responding had sales in excess of $21 M per year. Firms reported re-manufacturing, on average, over 1400 product types and over 50,000 part types per facility. The majority (80%) of re-manufacturing firms uses a mix of make-to-stock (MTS), make-to-order (MTO), and assemble-to-order (ATO) strategies, within a single re-manufacturing facility. Only one-fifth of firms surveyed reported having pure MTS, MTO or ATO strategies. Further, almost a quarter of the firms report that the mix of MTS, MTO, and ATO changes based on market conditions. In order to manage this amount of product diversity many re-manufacturing firms surveyed reported using hybrid PP & C systems. These systems included customized material requirements planning (MRP) Systems, combined with Just-in-Time (JIT) techniques such as Kanbans, Theory of Constraints (TOC) techniques such as drum-buffer-rope, and classic inventory control techniques (reorder point and economic order quantity); although not all re-manufacturers used all techniques.
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