1. Production Manager 1 Strategic Planning Forecasting
Aggregate Plan (AP)
Master Production Schedule (MPS)
Material Req. Planning (MRP, JIT)
Capacity Req. Planning (CRP, TOC)
Scheduling, Sequencing of jobs/lots
Process Control (SPC)
Distribution of Goods

2. Production Manager 2 Product Development Product Mix
Raw Material Blending
Facility Location
Capacity Planning
Project Management
Quality Management
Maintenance
Human Resource Management

3. Capacity Planning Process Selection Investment, Econ. Of Scale
Break-Even Analysis
Market Forecast, Risk Assessment
Decision Trees
Layout, SLP method

4. Transport, location Markets, raw material, labour, ...
Transport Models
Facility Location Models
Other considerations
Multi Criteria Decisions
Even > 1 decision maker
AHP-method

5. Product Mix Resources known Determine Product Composition
Max Profit Contribution
LP: Linear (NLP), Continous (IP), Deterministic (SP), Static (DP)
Sensitivity Analysis
Shadow Prices
See ProductMix.xls in chapter 3, page 98- in W&A

6. Raw Material Handling Raw Material Blending (Diet)
Grading Raw Material
Cutting Stock
Packing, Loading
Optimization Models (LP, IP)
See Blending.xls chapter 4, page 160 in W&A
Also CuttingStock.xls in chapter 6 page 327

7. Production Plans (AP) Seasonal peaks Aggregate Unit
Production, inventory, work force
Overtime, shifts
Subcontract, Backlog, Shortage
Spreadsheet
LP, Transportation Method
Basis for Cash Flow Planning
See ProductionScheduling.xls in chapter 3, page 108- in W&A and also AP pages

8. MPS, Production Schedule
AP provides the framework
4 – 6 weeks
Max (Orders, Forecast)
Frozen Time Zone
Batch Sizes IP

9. Mat. Req. Plan (MRP, JIT) Reduces Inventories Requires:
Inventory Computer System
Bill of Materials (BOM)
“Frozen” Production Schedules
Discipline
Lot Sizing (IP, DP)

10. Inventory Control Based on Forecasting Minimizing Total Cost
Order Quantities/Lot Sizes (Q)
Reorder Point (R)
Optimization

11. Cap. Req. Plan (CRP, TOC) Balancing Capacity & Flow
Based on Process Analysis
Find the Bottleneck (TOC)
Simulation

12. Short Term Job Scheduling
Determine sequence (batches, orders)
Processing times, Due dates
SPT, EDD, LPT, …
Criteria (flow, tardiness, …)
Other related problems:
Min Setup Times (TSP)
Shift Scheduling
Heuristics (GA, SA, TS)

13. Distribution Min Cost, Max Service Vehicle Routing
Capacity, Time windows
Clark & Wright Savings Method
Network Models, LP, IP
Collection (milk, garbage, …)