An interactive dynamic inventory-production control system

The development and evaluation of an interactive model for controlling inventories and scheduling production in a high technology batch production environment are discussed. The model allows the use of expert knowledge and company policy for matters such as customer service and safety stocks, in an interactive way. Production of a large number of products has to be scheduled for a number of time periods and a modified Wagner-Whitin algorithm is used for developing good schedules. A versatile data and information management system is a part of the developed software which has been implemented using a standard microcomputer. An evaluation suggests that the system is a practical one for use by busy managers. Further, it results in substantial cost savings and increased customer service.