Table of contents for Production planning and inventory control / Seetharama L. Narasimhan, Dennis W. McLeavey, Peter J. Billington.


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PART I
FOUNDATION      1
Demand Management
Chapter 1
Manufacturing and Service Strategies    5
Introduction  5
Manufacturing as Competitive Advantage  6
Manufacturing for Competitive Advantage Framework  9
Corporate Strategy and Manufacturing Strategy  11
Summary 15
Problems  16
References and Bibliography  16
Appendix 1A: How They Brought Home the Prize, Tom Inglesby 17
Chapter 2
Forecasting 25
Introduction 25
Common Time Series Forecasting Models 28
Monitoring the Forecasting System  42
Controlling the Forecasting System 46
Focus Forecasting 47
Pyramid Forecasting 47
The Forecasting Process 47
Summary 49
"Problems 50
References and Bibliography 52
Appendix 2A: Double Exponential Smoothing
and Trend-Adjusted Exponential Smoothing 53
Appendix 2B: Some Empirical Findings on Short-Term Forecasting: Technique
Complexity and Combinations, Nada R Sanders and Larry R. Ritzman  58
Chapter 3
Special Topics in Forecasting 66
Introduction 66
Multi-Item Forecasting  67
Slow-Moving Item Forecasting  80
Summary 82
Problems 82
References and Bibliography 86
PART 1I
MATERIALS MANAGEMENT         87
Chapter 4
Baasic Inventory Systems 91
Introduction 91
Functions and Types of Inventories 91
Measures of Inventory System Performance 93
nventory Distribution by Value: The ABC System  95
Inventory Systems 96
Implementation Issues 108
Summary 109
Problems 109
References 1 16
Appendix 4A: Re-Engineer the Materials and Procurement Function,
John A. Ferreira  I 1
Chapter 5
Multi-tem Joint Replacement 118
Introduction  118
Economies of Joint Replenishment 11 8
Assumptions 119
Joint Replenishment Order Quantity Model 119
Joint Replenishment Order Model with Varying Item Cycle  24
Joint Replenishment Production Quantity Model 128
Summary 130
Problems  130
References and Bibiography 131
Appendix 5A: Designing an integrated Distribution System at DowBrands, Inc.,
E. Powell Robinson, Jr., Li-Lian Gao, and Stanley D. Muggenborg  132
Chapter 6
lnventory Systems under Risk 143
Introduction  143
Single Period Model 144
Service Level and Safety Stock 145
Percent Order Service Safety Stock and the MultiperiodCase 147
Percent Unit Service Safety Stock  148
Backorder or Lost Sale Costs 151
Joint Determination of Q and R 154
Lead Time Adjustments 157
Lead Time Variability 159
Time-Varying Demand 159
Anticipated Price Increases 160
Inventory Control Systems in Practice 160
Summary   162
Problems 163
References and Bibliography 165
Appendix 6A: Table of the Unit Normal Distribution  166
Chapter 7
Introduction 175
LIMIT 176
Exchange Curves 179
LaGrange Multipliers 180
Unknown Costs 186
Holding/Service Exchange 186
Unit Stockout Objective  188
Stockout Situation Objective  190
Comparison of the Safety Stock Policies 193
Summary   194
Problems 195
References and Bibliography 197
Appendix 7A: Hewlett-Packard Gains Control Inventory and Service through Design
for Localization, Hau L. Lee, Corey Billington, and Brent Carter  198
Chapter 8
Distribution nventory Management 208
Introduction 208
Multilocation System Definitions 209
Industrial Dynamics 214
Centralization of Inventories 215
Safety Stocks 218
Distribution Inventory Systems 220
Summary   233
Problems 234
References and Bibliography 237
Appendix 8A: Integrated Production, Distribution, and Inventory Planning at Libbey-
Owens-Ford, Clarence H. Martin, Denver C. Dent, and James C. Eckhart 238
PART III
PLANNING ACTIVITIES     251
References and Bibliography 253
Chapter 9
Aggregate Planning 255
Introduction 255
The Nature of the Aggregate Planning Decisions 255
Aggregate Planning Defined 256
The Value of Decision Rules 258
Costs 258
Aggregate Planning Strategies 262
Aggregate Planning Methods 262
Summary 281
Problems 284
References and Bibliograph 290
Appendix 9A: Multiproduct Production Scheduling at Owens-Coming
Fiberglass, Michael D. Oliff and E. Earl Burch 292
Chapter 10
The Master Production Schedule 302
Introduction 302
Bill of Material Types 307
Structuring the Bill of Material 312
Modular Bills of Material 313
Disaggregation Techniques 324
Managing the Master Schedule 331
Maintenance of the MPS 333
Summary 335
Problems 335
References and Bibliography  341
Appendix 10A: The Master Schedulers Job Revisited, Paul W. Funk, CPM  342
chapter 1
The Planning of Material Requirements 350
Introduction  350
MRP andMRP I     351
mplementation of MRP and MRP II 353
The Parts Requirements Problem  354
The Mechanics of MRP  357
MRP Concepts and Advantages 360
Lot Sizing 364
Uncertainty and Change in MRP Systems 375
Net Change Versus Regenerative MRP Systems 376
System Nervousness. Firm Planned Orders, and Time Fences 381
Summary 386
Problems 386
References and Bibliography 390
Appendix 1A: A Small Manufacturer Makes a Concrete Investment in MR
David Capel and Deborah Kades 391
PART IV
CONTROL ACTIVITIES 395
Chapter 12
Capacity Planning and Control 399
Introduction  399
Long-Range Capacity Planning 403
A  ^/^i '   i t l
Medium-Range Capacity Planning and Control 413
Short-Term Capacity Planning and Control 415
Summary   420
Problems 421
References and Bibliography 428                      Delivery, Control
Appendix 12A: Finite Capacity Scheduling Helps -  .  v 49
Costs. Roberta Jung, Chris Mulherin. and Terrv R'gg  .
C spter 3
Chapter 13                               Tme Systems     436
High-Voume Production Activit Control and Jus
Introduction 436
The Production Environment 436.
Controlling Continuous Production 438
Sequencing and Line Balancing Methodologies
Relationship to Aggregate Planning 444
Batch Processing Techniques 445
Process Industry Scheduling 448
Just-In-Time (JIT) 450
Summary 459
Problems 459
References and Bibliography  464              elive- Mehran Scpehri 466
Appendix 13A: Case in Point: Buick City Gentuie          i    i
Chapter 14
Job Shop Production Activity Planning 470
Introduction  470
Database Information Requirements 472
Scheduling 474
Shop Loading 478
Sequencing 484
Priority Rules for Dispatching Jobs 485        489
Mathematical Programming, Heuristics, and Sinmulano
Worker Scheduling in Service Operations 497
Summary 500
Problems 500
References and Bibliography  507           . in Scheduling,
Appendix 14A: Computer Simulation Drives Itnnr va
Michael B. Thompson  508
Chapter 15
Job Shop Production Activity Control 516
Introduction  516
Dispatching  516
Corrections to Short-Term Capacity 517
Production Reporting and Status Control 520
Factors Affecting the Completion Time of Jobs 520
Techniques for Aligning Completion Times and Due Dates 526
Scheduling in Flexible Manufacturing System  533
Summary 536
Problems 537
References and Bibliography 540
Appendix 15A: The Flexible Factory Revisited, Robert U, yres
and Duane C. Butcher 541
Chapter 16
Theory of Constraints and Synchronous Manufacturing 561
Introduction  561
Theory of Constraints 562
The Goal and Performance Measures 563
Capacity 564
Synchronous Manufacturing  567
Marketing and Production  572
Summary 575
Problems 575
References and Bibliography 577
Appendix 16A: How the Constraint Theory Improved A Job-Shop Operation,
David Koziol 577
Chapter 17
Project Management Techniques 585
Introduction  585
Gantt Charts 585
The Use of CPM and PERT 586
The Critical Path Method (CPM) 587
The Program Evaluation and Review Technique (PERT) 594
Line of Balance (LOB) 601
Project Scheduling with CPM/MRP  604
Project Management Using Microcomputers 612
Summary 612
Problems 613
References and Bibliography 620
Part V
MANUFACTURING STRATEGY AND TECHNOLOGY              623
Chapter 18
Speed to Market 627
"Introduction 627
Benchmarking 628
Simultaneous Engineering 630
Reverse Engineering 633
Technology Audits 634
Strategic Alliances 636
Summary   638
Problems 639
References and Bibliography 639
Appendix 18A: Benchmarking Bonanza, Beth Enslow  640
Chapter 19
Technological Innovations in Manufacturing 649
Introduction  649
Computer Integrated Manufacturing  649
Tools for Manufacturing Planning  651
Manufacturing Automation  656
Material Control 658
Integration Issues in CM  659
Summary   661
Questions 661
References 661
Appendix 19A: The Age of Re-Engineering, A. J, Yogi 663
Chapter 20
Total Quality Management 673
Introduction 673
Total Quality Management (TQM) 673
TQM as a Key Component of Competitive Initiatives 676
The TQM Process of Improvement 678
TQM's Impact on Production Planning and Inventory Control Activities 682
Malcolm Baldridge National Quality Award 683
Summary 685
Problems 685
References and Bibliography  686
Appendix 20A: Market Driven Quality: IBM's Six Sigma Crusade
Bruce C. P. Rayner 687
Appendix 20B: IBM's Rochester Facility Strives for a Perfect 10, Robert Havid  692
Clapter 21
Factory of the Future  695
Introduction  695
Trends 696
Implications for Production Planning and Inventory Control 699
Summary   699
References and Bibliography  700
Appendix 2 [A: Tools to Become World Class Are Available
It's Up to You to Use Them, Glenn A. Fishman  700



Library of Congress subject headings for this publication: Production planning, Inventory control