A Model of Production Decision Behavior

Cover A Model of Production Decision Behavior
A Model of Production Decision Behavior
Peter D Fox
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Are the Sales -Treasury estimates of the lower and upper control levels for item i, O^s. ^S. . ' 1 1 -7- The most basic decision of the Production Control Manager is whether or not to insert an incoming order into the existing schedule. The existing order normally will either be inserted into this schedule, or scheduled for the following work day. V/e define the dependent variable Y as equal to zero for an order which could have been inserted but was not, and as equal to one for an order v^hich... has been inserted. Thus, for total producti a defined as : p(t) = s. P. Ct) [2 ] the actual scheduling decision rule for each iton i is: P. (t) = Y. (t) • P! (t) + (1 - Y. (t-l)) • P! (t-1) = Y. (t)P!(t) - Y. (t-l) P: (t-1) + P! (t-1). The Production Control Manager vdll select various values of Y. (i. E. , either or 1) for each i during the period or day t, according to some priority reference and his loss schedule for the system. 1 . Scheduling Priorities The Manager's goals in scheduling are twofold: "to get customer orders out on time, " and "to keep set-up costs low on the bl .

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