TY - JOUR
T1 - Modelling the effect of demand variations on the performance of a production system
AU - Gunasekaran, A.
AU - Martikainen, T.
AU - Yli-Olli, P.
N1 - Funding Information:
The authors gratefully acknowledge the helpful comments by Professors Antti Kanto and Martti Luoma, Department of Statistics, University of Yaasa, Finland, which helped to improve the presentation of the model. The financial support provided by the Neste Foundation is also gratefully acknowledged.
PY - 1993/7
Y1 - 1993/7
N2 - Modelling the effect of demand variations on a production system manufacturing multiple products is discussed. The various system costs involved in the production system, namely set-up cost and inventory cost incurred due to change in demands for the products with respect to products and planning periods are estimated. A statistical modelling is presented for determining the production capacity and inventory level requirement to satisfy the customer to a certain level decided by the management. Two important factors, (i) number of types of products and (ii) multiple planning horizons are considered to identify the costs as well as the production capacity and inventory level requirements. A statistical method, analysis of variance (ANOVA) is used to study the variations in the demands and costs involved. Finally, an example is presented to explain the application and the behaviour of the statistical model.
AB - Modelling the effect of demand variations on a production system manufacturing multiple products is discussed. The various system costs involved in the production system, namely set-up cost and inventory cost incurred due to change in demands for the products with respect to products and planning periods are estimated. A statistical modelling is presented for determining the production capacity and inventory level requirement to satisfy the customer to a certain level decided by the management. Two important factors, (i) number of types of products and (ii) multiple planning horizons are considered to identify the costs as well as the production capacity and inventory level requirements. A statistical method, analysis of variance (ANOVA) is used to study the variations in the demands and costs involved. Finally, an example is presented to explain the application and the behaviour of the statistical model.
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U2 - 10.1080/00207729308949565
DO - 10.1080/00207729308949565
M3 - Article
AN - SCOPUS:84950957491
SN - 0020-7721
VL - 24
SP - 1349
EP - 1362
JO - International Journal of Systems Science
JF - International Journal of Systems Science
IS - 7
ER -