INCLUDING KITTING DECISIONS IN THE DESIGN OF SUPPLY CHAINS FOR THE AERONAUTIC INDUSTRY

Abstract Changing market conditions have forced a major aircraft engine manufacturer to review its entire supply chain and the way it should operate. In this paper we first describe the changes faced by the manufacturer and then present a mathematical programming model that will help the manufacturer in his sourcing decisions for the assembly of an engine consisting of a multi-level BOM. The novelty in this model is inclusion of the assignment of parts to suppliers to form kits that are then delivered to the main assembly line.