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Uncertainty and Production Planning

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Planning Production and Inventories in the Extended Enterprise

Part of the book series: International Series in Operations Research & Management Science ((ISOR,volume 151))

Abstract

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.

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Acknowledgment

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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Authors and Affiliations

  1. MIT, 77 Massachusetts Avenue, E62-579, Cambridge, MA, 02139-4307, USA

    Stephen C. Graves

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  1. Stephen C. Graves
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Correspondence to Stephen C. Graves .

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Editors and Affiliations

  1. Decision Technologies, Intel Corporation, W. Chandler Blvd. 5000, Chandler, 85226, Arizona, USA

    Karl G. Kempf

  2. School of Industrial &, Systems Engineering, Georgia Institute of Technology, Ferst Drive NW., 765, Atlanta, 30332-0205, Georgia, USA

    Pınar Keskinocak

  3. , Edward P. Fitts Department of Industrial, North Carolina State University, Daniels Hall 300, Raleigh, 27695, North Carolina, USA

    Reha Uzsoy

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Graves, S.C. (2011). Uncertainty and Production Planning. In: Kempf, K., Keskinocak, P., Uzsoy, R. (eds) Planning Production and Inventories in the Extended Enterprise. International Series in Operations Research & Management Science, vol 151. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-6485-4_5

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