Uncertainty and Production Planning

  • Stephen C. Graves
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 151)


The intent of this chapter is to review and discuss how uncertainty is handled in production planning. We describe and critique current practices and then prescribe possible improvements to these practices. In particular, we argue that there are a set of tactical decisions that are critical to the proper handling of uncertainty in production planning. We observe that current planning systems do not provide adequate decision support for these tactical decisions; we regard this shortcoming as an opportunity for new research and development, which could significantly improve the practice of production planning.


Lead Time Planning System Production Planning Demand Forecast Safety Stock 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.



The preparation of this chapter has been supported in part by the MIT Leaders for Manufacturing Program, a partnership between MIT and global manufacturing firms; and by the Singapore-MIT Alliance, an engineering education and research collaboration among the National University of Singapore, Nanyang Technological University, and MIT. The author acknowledges and thanks the anonymous reviewer and the editors for their helpful comments that have improved the chapter.


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Copyright information

© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  1. 1.MITCambridgeUSA

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