Lecture 2
Introduction to
production & Operations
Chapter 1
Functional Areas of Firms
Operations
(product design, manufacturing,
product quality, process
efficiency, customer service,
inventory management,.)
Marketing
Finance
Reserved from McGraw-Hill/Irw
Lecture 11
inventory control subject to
deterministic demand
Chapters 4
Types of inventory
( in context of manufacturing and distributions)
Raw materials
Required resources for production
Components
Items that have not yet reached completion in the
produc
Lecture 8
aggregate planning
Chapter 3
Aggregate Planning
Problem of deciding how many employees the firm should
retain, and for a mmanufacturing firm, the quantity and mix
of products to be produced
Applies to both mmanufacturing and service companies
Lecture 12
inventory control subject to
deterministic demand
Chapter 4
Recap of what we covered last class
Relevant Costs
Inventory Costs - Cost minimization and profit
maximization are appropriate optimization or performance
criteria
Inventory costs co
Lecture 15
inventory control subject to
uncertain demand
Chapter 5
Recap of what we covered last class
Determining the Optimal Policy
Costs:
co = unit cost of overage
cu = unit cost of underage
It can be shown that the optimal number of papers to
purcha
Lecture 24
operation scheduling
Chapter 8
Sequencing Theory for a Single Machine
2
Recap of what we covered last class
Sequencing Theory for a Single Machine
Assume n jobs are to be processed through one machine
Due date and processing time are constant
Lecture 20
push and pull production
control systems
Chapter 7
pull production control systems
Chapter 7
Recap of what we covered last class
Push vs. Pull
A push system is one in which production planning is
done for all levels in advance. Once production
Lecture 23
operation scheduling
Chapter 8
Recap of what we covered last class
Common Sequencing Rules
FCFS: First Come First Served. Jobs processed in the
order they come to the shop.
SPT: Shortest Processing Time. Jobs with the shortest
processing time
Lecture 21
operation scheduling
Chapter 8
Hierarchy of Production Decisions
Scheduling Problems in Operations
Job Shop Scheduling
scheduling of personnel and equipment in a work center to
meet the due dates for a collection of jobs
Personnel Scheduling
Lecture 19
material requirement planning
(mrp)
Recap of what we covered last class
The Explosion Calculus
The explosion calculus is a set of rules for converting the
master production schedule to a requirements schedule for
all subassemblies, components,
Lecture 18
push and pull production
control systems
Chapter 7
Recap of what we covered last class
Push vs. Pull
A push system is one in which production planning is
done for all levels in advance. Once production is
completed, units are pushed to the nex
Lecture 26
supply chain management
Chapter 6
What is Supply Chain?
Supply chain: The global network used to deliver products and
services from raw materials to end customers through an
engineered flow of information, physical distribution, and
cash.
APIC
Lecture 14
inventory control subject to
uncertain demand
Chapter 5
The Nature of Uncertainty
Suppose that we represent demand as
D = Ddeterministic + Drandom
If the random component is small compared to the
deterministic component, the models of chapter
Lecture 3
Introduction to
production & Operations
Chapter 1
Recap of what we covered last class
Relevance to Production & Operations
Product: an item that satisfies the markets/costumers need
Production: the act of making products (both goods and Servic
Lecture 9
Review 1
Chapters 1, 2, & 3
Strategy & Competition
Chapter 1
Relevance to Production & Operations
Product: an item that satisfies the markets/costumers need
Production: the act of making products (both goods and Service)
Operations: involves
Lecture 5
Forecasting
Chapter 2
General Steps in Forecasting
Determine the purpose of the forecasting
Establish a time horizon
Gather and analyze appropriate data
Select the most suitable method(s)
Prepare the forecast
Monitor the forecast
Compare the ac
Lecture 7
forecasting
Chapter 2
Recap of what we covered last class
General Steps in Forecasting
Determine the purpose of the forecasting
Establish a time horizon
Gather and analyze appropriate data
Select the most suitable method(s)
Prepare the forecast
Lecture 4
Forecasting
Chapter 2
Production System Functions
Production System
INPUTS
Operations Planning
Inventory Planning
Inventory Control
Operation Scheduling
Dr. Mojahid F. Saeed Osman/ISE402
OUTPUTS
Forecasting
Introduction to Forecasting
What is f
Lecture 6
Forecasting
Chapter 2
Recap of what we covered last class
General Steps in Forecasting
Determine the purpose of the forecasting
Establish a time horizon
Gather and analyze appropriate data
Select the most suitable method(s)
Prepare the forecast
Lecture 10
Aggregate Planning
Chapter 3
Recap of what we covered last class
Aggregate Planning
Problem of deciding how many employees the firm should
retain, and for a mmanufacturing firm, the quantity and mix
of products to be produced
Applies to both
Lecture 17
inventory control subject to
uncertain demand
Chapter 5
Recap of what we covered last class
Determining the Optimal Policy
Costs:
co = unit cost of overage
cu = unit cost of underage
It can be shown that the optimal number of papers to
purcha
Lecture 13
inventory control subject to
deterministic demand
Chapter 4
Recap of what we covered last class
EOQ Extension to a Finite Production Rate
P production rate
T1 is the uptime
T2 is the downtime
T is the cycle length
T=T1+T2
T= Q/
Number of units
Lecture 16
inventory control subject to
uncertain demand
Chapter 5
Recap of what we covered last class
Determining the Optimal Policy
Costs:
co = unit cost of overage
cu = unit cost of underage
It can be shown that the optimal number of papers to
purcha
Lecture 25
operation scheduling
Chapter 8
Assembly line balancing
n distinct tasks that must be completed on each item
The time required to complete task i is a known constant ti
The goal is to organize the tasks into groups, with each
group of tasks b
KING FAHD UNIVERSITY OF PETROLEUM & MINERALS
Systems Engineering Department
ISE 402.01: Production Systems and Inventory Control
Term: Second Semester 2014-15 (142)
Instructor
:
Dr. Mojahid F. Saeed Osman
Office Location: 22-133
Phone: 860-3162
E-Mail: mf
king_acmilan@hotmail.com
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I
Stochastic Inventory
Management
Overview of Chapter 5
Newsboy Model
Continuous Review Models
Periodic Review Models
Other inventory models
Newsboy Model
Example: A newsboy owns a news stand in the corner of College St. and University
Ave. and has to decid
Deterministic Inventory
Management
EOQ with finite production rate
Assumptions
The same as in the basic EOQ model
Items are produced at a rate P (>) during production run
I (t )
Q
Slope = P
H
Slope = -
Slope = P -
T1
T2
T
t
EOQ with finite production rat
Note: The aid sheet does not provide all equations. This just provides some to help you
remember. It is your responsibility to understand the theories, procedures, and equations.
Moving average: Ft 1,t =
2
1 t 1
N Di Exponential smoothing: Ft 1,t = Dt 1 +
Aggregate Planning
Example 3.2
Demand and Initial Conditions
There are 300 workers at the beginning
1 worker produces 0.14653 units per day
Initial inventory = 500; target ending inventory = 600
=1280-500
Month
Demand
Net Demand
Net Cum. Demand
1
780
780