Cost estimation for a production scheduling and control system of a small company with permissible backordering

• Main Authors: Apichotwasurat Pitchanan, 陳維真
• Other Authors: Fu,Kuo-En
• Format: Others
• Language: en_US
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/96695444826987820832

碩士 === 台灣首府大學 === 工業管理學系研究所 === 101 === Abstract Struggling to live in the 21 century, lots of small companies of which the production scheduling and control system (PSCS) are based on rules of thumb. While facing shortages and excess of inventory, they always do not have reliable data or efficient methods to cope with because of the lack of a precise mathematic model. For improving the performances of PSCS of a small company, this study attempts to utilize simulation to search a better solution. A small company X in Thailand which regularly relied on rules-of-thumb to handle PSCS is chosen as an example. At first, the PSCS of the company is framed in a material requirement planning (MRP) system which includes production planning (PP), master production scheduling (MPS), and MRP. Secondly, economic order quantity (EOQ) is employed to determine the lot size for both of MPS and MRP. The small sized company belongs to the fastener and fixing industry of which the production system is a single-line multi-stage flow shop. The proposed EOQ adopting MRP approach is supposed to have better economics than original rule-of-thumb methods. The studied case is simulated for verifying this proposition. In this study, two kinds of materials and three types of products are traced accompanied by cost monitoring along a period of two months. An estimation method is proposed for costing the machining and setup costs in the single-line multi-stage flow shop. Additionally, the EOQ for the production system is derived. Cost comparisons between self-production and outsourcing are made for references of future decision. Comparison of the EOQ lot sizing MRP system with original operation system which is based on rules-of-thumb is made for performance evaluation as well. Keywords: PSCS, EOQ, Backorder, Product Costing