DEVELOPMENT OF A NEW INVENTORY POLICY AT A ROLLING MILL.

An aluminum rolling mill was facing increasing delays in filling orders. To counter this trend and provide better service to high-volume customers, management asked for a new inventory policy. The procedure used to derive the new policy used two models: an optimal width selection program and a process simulation model. The application of these models, the results they produced, the ensuing new inventory policy, and implementation of that policy are described.