1 Using Queueing Network Models to Set Lot - sizing Policies for Printed Circuit Board Assembly Operations

The current trend among manufacturers is to reduce WIP by decreasing the lot size. Reducing the lot size in some cases may have an adverse effect on system performance because more setup time is incurred. In this paper, we propose the use of queueing network models to determine the best lot-sizing policy that minimizes the WIP. The queueing network model is validated by comparing its results to the output of a simulation model. Although the focus of this paper is on WIP reduction not demand management, a reduction in the lead time allows a manufacturer to respond faster to new customer orders. This approach is used to set a lot-sizing policy for a printed circuit board assembly process of an electronics manufacturer.