A comparison of fixed and adaptive type controls for multi-product processing

A comparison of fixed and adaptive type controls for multi-product processing

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Article ID: iaor19971297
Country: Netherlands
Volume: 45
Issue: 1/3
Start Page Number: 139
End Page Number: 146
Publication Date: Aug 1996
Journal: International Journal of Production Economics
Authors: ,
Keywords: inventory
Abstract:

Two production/inventory control systems are compared for a chemical process line that produces several different products, one at a time. Because of the complexity of the distribution system, little or no feedback information on inventory levels is available. Thus, a fixed production cycle schedule, based on long-range forecast, is used. This push type control results in low customer service and high setup costs when the production sequence must be altered to expendite production of a particular product. A pull type adaptive production scheduling policy is proposed which determines production runs by considering random demands and on-hand inventories. The information system costs must be justified by cost savings and increased customer service. Computer simulation is used to compare the average annual costs and service provided by each production policy for an actual chemical production line. Sensitivity and factor analysis results are also summarized.

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