Feedback method of production ordering system in multi-stage production and inventory systems

This paper deals with the problem of developing a production ordering system which maintains high reliability and productivity of multi-stage production and inventory systems with capacity-constraint and machine breakdown. In this paper, two ‘push type’ production ordering systems (Matsuura and Soshiroda 1981) are proposed according to information feedback methods. The influence of forecasting error, the difference between forecasted demands, down-time, and the backlog caused by the restriction of production capacity, upon the production and inventory levels is analysed by each production ordering system. The results indicate that, in designing an effective production ordering system, a feedback method must be chosen according to the conditions of the average loading ratio, the down-time, and the autocorrelation coefficient of demand.