Optimal production model for EVs manufacturing process in Turkey: A comparable case of EMQ/JIT production models for EV's battery production

Abstract

In order to keep pace with the ever-changing global community, numerous manufacturing companies have switched to the Just-In-Time (JIT) production model, and many others are considering this approach as well. The competition in global markets pressure domestic and Multi National Corporations (MNCs) to meet "global production" standards that enable simultaneous production, or concurrent engineering. Various benefits have been asserted for the companies that utilize the JIT production model for inventory management such as reduced process inventory costs and holding costs. JIT production strategy - also called "Toyota Production System" - is implemented successfully by various automotive manufacturing firms. Turkey has been manufacturing the Electric Vehicles (EVs) for the domestic and global markets as well as establishing a production strategy for EVs. Considering that EVs will be penetrating the Turkish auto market for the first time after several unsuccessful attempts (by other countries) throughout the 20th century, it is left up to manufacturers to determine the production strategy due to inadequate supply-demand forecasts. Since the EV is still in its early stages in Turkey, the traditional economic production models(EPQ) might not be the best reference for manufacturers. This paper focuses its investigation on which optimal production model is suitable for a EVs battery manufacturing process, and at what point should producers switch from JIT to EMQ in order to reduce costs. (C) 2012 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of the 8th International Strategic Management Conference