Slide 1ISEN 315 Spring 2011 Dr. Gary Gaukler Slide 2 Inventory Control Deterministic inventory control Stochastic inventory control MRP / Lot sizing / JIT Supply chain management…

Slide 1ISEN 315 Spring 2011 Dr. Gary Gaukler Slide 2 Hierarchy of Planning Forecast of aggregate demand over time horizon Aggregate Production Plan: determine aggregate production…

Slide 1ISEN 315 Spring 2011 Dr. Gary Gaukler Slide 2 Newsvendor Model - Assumptions Assumptions: One short selling season No re-supply within selling season Single procurement…

Slide 1ISEN 315 Spring 2011 Dr. Gary Gaukler Slide 2 Lot Size Reorder Point Systems Assumptions –Inventory levels are reviewed continuously (the level of on-hand inventory…

Slide 1ISEN 315 Spring 2011 Dr. Gary Gaukler Slide 2 Operations Finance Marketing Functional Areas of the Firm Slide 3 Time Horizons for Decisions 1. Long Term Decisions…

Slide 1ISEN 315 Spring 2011 Dr. Gary Gaukler Slide 2 1.Master production schedule 2.Bill of material (BOM) 3.Inventory availability 4.Purchase orders outstanding 5.Lead times…

Slide 1ISEN 220 Introduction to Production and Manufacturing Systems Dr. Gary Gaukler Slide 2 6 – 2 Quality and Profit  Profit = Revenue – Cost  Quality impacts…

Slide 1 ISEN 315 Spring 2011 Dr. Gary Gaukler Slide 2 Demand Uncertainty How do we come up with our random variable of demand? Recall naïve method: Slide 3 Demand Uncertainty…

Slide 1 ISEN 315 Spring 2011 Dr. Gary Gaukler Slide 2 Review: Prototype LP Problem Desk manufacturer Regular and rolltop desks, made of wood Regular: 20 sqft pine, 16 sqft…