In this section we consider subjects related to Operation of Manufacturing systems. The subjects considered parallel the Excel add-ins available for computational procedures. Details of the add-ins may be found in the Computations section of this site.

Unit Forecasting

A time series is a sequence of observations of a time varying quantity of interest. Examples are the monthly demand for a product, the annual freshman enrollment in a department of the university and the daily flows in a river. Time series are important for operations management because they are often the drivers of decision models. An inventory model requires estimates of future demands, a course scheduling and staffing model for the university department requires estimates of future student inflow, and a model for providing warnings to the population in a river basin requires estimates of river flows for the immediate future.

Unit Inventory Theory

Because of their practical and economic importance, the subject of inventory control is a major consideration in many situations. Questions must be constantly answered as to when and how much raw material should be ordered, when a production order should be released to the plant, what level of safety stock should be maintained at a retail outlet, or how in-process inventory is to be maintained in a production process. These questions are amenable to quantitative analysis through the subject of inventory theory.

Unit Materials Requirement Planning

Materials Requirement Planning (MRP) is a scheduling procedure for production processes that have several levels of production. Given information describing the production requirements of the several finished goods of the system, the structure of the production system, the current inventories for each operation and the lot sizing procedure for each operation, MRP determines a schedule for the operations and raw material purchases.

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Operations Management / Industrial Engineering
by Paul A. Jensen
Copyright 2004 - All rights reserved