Optimization of production and inventory policies for dishwasher wire rack production through simulation

A simulation model was built to represent the dynamics of a General Electric (GE) dishwasher wire rack production system associated with multiple types of racks and changeovers at the various work centers. A periodic-review inventory policy was simulated for the wire rack production system using order-up-to safety stock SS_i and a heuristic trigger variable P* as the control variables. A discrete optimization model was formulated and executed in order to find near optimal values for the control variables with respect to minimization of the total inventory levels while satisfying constraints on demand for the various types of racks. Three different scenarios involving optimization of the simulation model were conducted to help GE improve their production strategy.