Accession Number:

AD0255125

Title:

CONSTRAINED INVENTORY RULES FOR PRODUCTION SMOOTHING

Descriptive Note:

Corporate Author:

CARNEGIE INST OF TECH PITTSBURGH PA GRADUATE SCHOOL OF INDUSTRIAL ADMINISTRAT ION

Personal Author(s):

• WINTERS, PETER R.

Report Date:

1960-12-01

Pagination or Media Count:

1.0

Abstract:

Production smoothing means planning production levels for a factory that cut down the peaks and build up the valleys in translating sales into production. The term is usually used for a factory that manufactures to finished goods inventory one of the principal reasons for the existence of this inventory is that it allows smoothing. When sales are low, the factory maintains its production level and builds up inventory, from which it will deliver when sales are at a peak. If inventory decisions are to be made sensibly, they must be consistent with aggregate factory plans at the same time, aggregate plans must take into account how total production and inventory will be distributed among individual products. A method is presented which illustrates how it is possible, by limiting the extent of a constraint, to make nearly optimal decisions in a very simple way. Cost comparisons between the optimal and near-optimal methods are shown in graphs. Author

Descriptors:

• *INDUSTRIAL PRODUCTION
• *MANAGEMENT ENGINEERING
• COSTS
• DISTRIBUTION
• LOGISTICS
• PRODUCTION
• SCHEDULING
• THEORY

Subject Categories:

Distribution Statement:

APPROVED FOR PUBLIC RELEASE