Mukesh Bhagoria ¹, C. M. Sadiwala ², V. K. Khare ³

Affiliations
1 Mech. Dept. Manit, Bhopal, M.P., IN
2 Director, RGPV Bhopal, M.P., IN
3 Mech. Dept. Manit Bhopal, M.P-462003, IN

Abstract

The inventory problems of most of the manufacturing or trading organization are of great concern. The end item has independent demand and all its component and parts have dependent demand. These component and parts of end item are produced at different stages of production process. Thus, manufacturing of these dependent materials is done at multilevel. Depending upon the capacity of production, cost of setup and carrying inventories, the various parts and components are produced or procured at different level. MRP computes these requirements of material as per time schedule. In order to fulfill these demands of materials at multilevel situation, the production or procurement orders are released for economic batch or lot quantities. In the present paper, the order quantity or lot sizing is obtained by minimizing the cost of ordering plus the cost of carrying the item in stock certainly. Apart from that some constraint such as the availability of space and storing the inventory of these multiple items need to be taken into account.

Keywords

Inventory Management, MRP, LOT for LOT, Carrying Costs, Changeover Costs

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Mukesh Bhagoria ¹, C. M. Sadiwala ², V. K. Khare ³

Affiliations
1 Mech. Dept. Manit, Bhopal; 2Director, RGPV Bhopal, MP, IN
2 Director, RGPV Bhopal; MP, IN
3 Mech. Dept. Manit Bhopal, M.P-462003, IN

Abstract

In this paper we present a model and solution methodology for production and inventory management problem that involve space constraint. The model formulation is quite general, allowing organization to handle a variety of multi-item decision such as determining order quantities. With the growing interest in dealing with the volatile demand fluctuations, there is a renewed interest to enhance responsiveness in capacity planning and in particular, to address the dynamic changes in product mix. We propose a new representation for the capacity utilization. With a more refined representation, overlapping and non-overlapping, capability regions can be identified and their inter-relationships with respect to capacity can then be applied for improving the match between the capacity and production orders. Thus, better planning and capacity utilization can be achieved. An example is presented to demonstrate the proposed approach and summarizes the work on a user interface for an MRP II planning system which has been developed using artificial intelligence techniques as a support tool for the final user. Experiences with real applications show that the success of such a system depends on the flexibility and facility to acquire the knowledge through a correct model and the facilities for displaying results.

Keywords

Material Requirement Planning, Capacity Planning, Economic Order Quantity (EOQ)

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