Trade‐offs between multiskilling and inventory in assembly line operations under demand variability

The demand variability in case of assembly line operations can be absorbed either by multi‐skilling of operators on the line, empowering them to handle a wider mix of work‐elements or by holding finished goods inventory. This paper examines trade‐offs between these two groups of policies by developing a simulation‐based model. Four policies are evaluated and their cost implications examined to enable decision makers to choose the best policy depending upon the situation specific parameters. A case study to illustrate the proposed model is presented and results are found to be insightful. A methodology to identify training needs in case of multi‐skilling is also developed.