A Simulation On Postponement Manufacturing Strategy Of Company A Based On Flexsim

Demand is diverse, personal and volatile under the current market, How to effectively match finite product supply ability and uncertainty of demand, is a common problem to the manufacturing enterprises. The traditional make-to-stock method is not applicable. The diverse and individual needs require make-to-order method, which can avoid the demand risk, finished goods inventory, and improve service levels. But the total MTO approach can’t achieve large-scale production of the economy, with high manufacturing costs, long delivery time.To solve the problems above, we need a strategy to balance them, then postponement manufacturing strategy is proposed. This strategy delays the processes of customized products and manufacturing activities until receiving the orders. With fewer customization activities, it can quickly respond to consumer demand, with variety of products, short delivery time, and effectively deal with the uncertainty of market risk.Based on the background above, this paper analyzes the demand uncertainty risks that Company A faced, and considers using this strategy to reduce the risk in operating level. After having analyzing the product features and the operation, we analyze the feasibility to use the strategy in Company A. Based on FlexSim, which is a discrete event simulation software, we establish two models, one before and the other after the application of the strategy. By comparative analysis of the inventory level, the waiting time of orders, we find that after using the strategy, the inventory level and the waiting time of orders reduce significantly, the service level greatly improved. From the perspective of cost and service level, we suggest the reasonable inventory level of component commonality under current demand. Finally, we do some analyses on the factors, to get some appropriate measures to the uncertainty.