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A dynamic inventory-production scheduling model for small scale organisations

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Abstract

A production scheduling model based on the minimisation of inventory costs is proposed for small scale organisations . This is an interactive model characterised by its ability to cope with continuous changes in production and demand conditions. The model is built on the foundation of the Wagner-Whitin algorithm, and has incorporated factors of safety stock, economic batch quantity, production capacity and past forecast accuracy in inventory and production scheduling. It has been implemented in a computer programme and tested within a company. Results show that by using this model substantial savings can be achieved in inventory costs.

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Authors and Affiliations

  1. Department of Manufacturing and Engineering Management, City University of Hong Kong

    I. K. Hui & H. C. W. Lau

  2. Department of Manufacturing Engineering, The Hong Kong Polytechnic

    H. C. W. Lau

Authors
  1. I. K. Hui
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  2. H. C. W. Lau
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Correspondence to I. K. Hui.

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Hui, I.K., Lau, H.C.W. A dynamic inventory-production scheduling model for small scale organisations. Int J Adv Manuf Technol 22, 89–100 (2003). https://doi.org/10.1007/s00170-002-1446-4

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  • DOI: https://doi.org/10.1007/s00170-002-1446-4

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