Production and inventory policies for an integrated manufacturing firm.

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Bibliographic Details
Title:	Production and inventory policies for an integrated manufacturing firm.
Authors:	Adam, Nabil R.¹, Ignall, Edward²
Source:	International Journal of Production Research. Nov/Dec80, Vol. 18 Issue 6, p753. 8p.
Subjects:	Product management, Production management (Manufacturing), Inventories, Production planning, Decision making, Guidelines, Inventory control, Manufactured products, Technical specifications, Primary commodities
Abstract:	The coordination of production and inventory decisions for raw materials, intermediate products and finished goods is important. We compare some decision rules for a firm that uses a single raw material to manufacture n different parts which are then assembled into the final product. Demand for the final product is probabilistic and there are costs of holding inventory and of ordering, manufacture and assembly. These characteristics are an idealization of the problem faced by a manufacturer of scaffolds in which the major processes are the manufacture of different sheet metal parts and their assembly. We develop production rules that use system-wide information. We use simulation to evaluated the performance of these rules and compare system behaviour to that under production rules that are derived separately for each item and use only local information about that item's status. [ABSTRACT FROM AUTHOR]
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Database:	Engineering Source

Description
Abstract:	The coordination of production and inventory decisions for raw materials, intermediate products and finished goods is important. We compare some decision rules for a firm that uses a single raw material to manufacture n different parts which are then assembled into the final product. Demand for the final product is probabilistic and there are costs of holding inventory and of ordering, manufacture and assembly. These characteristics are an idealization of the problem faced by a manufacturer of scaffolds in which the major processes are the manufacture of different sheet metal parts and their assembly. We develop production rules that use system-wide information. We use simulation to evaluated the performance of these rules and compare system behaviour to that under production rules that are derived separately for each item and use only local information about that item's status. [ABSTRACT FROM AUTHOR]
ISSN:	00207543
DOI:	10.1080/00207548008919704