Modelling for a dynamic inventory-production control system

The modelling of an inventory control production scheduling system is discussed. The model uses a Dynamic Programming formulation, incorporating the characteristics of the system, so that it can be used interactively by busy managers. This was achieved by a modified Wagner–Whitin algorithm and an interactive safety stock method. The microcomputer implementation of this model was tested, showing practically useful features, and resulted in substantial cost savings and increased customer service.