Identifying inventory problems in the aerospace industry using the theory of constraints

Abstract

In the aerospace industry, where each component is time-critical, many operation management tools are applied to improve material management efficiency. By using the theory of constraints (TOCs), this study diagnoses the undesirable effects (UDEs) of material management systems and identifies root problems or conflicting material management actions. In the second step, via UDEs, this study constructs a current reality tree (CRT) to identify a company's material management objectives and requirements, and the actions it takes to meet these objectives. In addition, the UDEs and CRT are applied to redesign the future reality tree (FRT) to develop strategies and eliminate the problems in the case company. By eliminating the conflicting inventory management activities of different departments, inventory management performance for the entire system is improved.

Keywords:

• theory of constraints (TOC)
• inventory management
• aerospace industry