Minimising moulding production and material storage costs

An examination of changing an inventory policy of a major manufacturing organisation and its impact on the cost structure of the organisation is presented. A classic cost confrontation between set-up costs and inventory costs are examined in the study. The results reveal that the unique nature of the manufacturing organisation favours short-run production scheduling over a proposed long-run production scheduling policy. This article also presents the application of a decision support system (DSS) to aid in production scheduling. The applications reveals that improved scheduling and a reduction in scheduling time and effort can be achieved by using the DSS over the manufacturing organisations’ manual systems.