Optimizing automotive production scheduling to reduce finished vehicle inventory

Abstract

This thesis addresses inefficiencies in automotive finished vehicle inventory management arising from misalignment between production scheduling and outbound logistics. Traditional production planning prioritizes manufacturing efficiency, causing significant inventory accumulation as vehicles await completion of full shipment loads. This research proposes an Integrated Production and Outbound Distribution Scheduling approach, introducing an optimization step within existing production scheduling workflows to align production sequences for expedited load formation. Back-testing on two automotive assembly lines over 82 weeks reveals a mean inventory reduction potential of 63–65%, with variability influenced by production volumes and vehicle configurations. A proof-of-concept implementation confirms the practical feasibility of optimized schedules, reducing inventory holding times by 33% without disrupting manufacturing operations. Computational performance analysis demonstrates good scalability for instances with fewer than 600 vehicles, though larger scenarios still yield meaningful inventory reductions. This work highlights substantial opportunities for automotive original equipment manufacturers to enhance efficiency by integrating outbound logistics into production scheduling.