AN ANALYSIS OF NONLINEAR INVENTORY-PRODUCTION CONTROL SYSTEM WITH PRODUCTION CONSTRAINTS
DOI:
https://doi.org/10.23055/ijietap.2019.26.4.2429Keywords:
Production, Inventory, Nonlinear system, Production smoothing constraintsAbstract
In case of free fluctuation production process, some portion of the capacity (including equipment and human resource) would be underutilized so that production managers in factories almost produce in a smooth manner with less deviation from average. In order to model this smoothed production strategy, Inventory and Order Based Production Control System (IOBPCS) is extended by introducing upper and lower constraints on production process to restrict highly fluctuated manufacturing resulting in more smooth operation with less cost compared with the swing production. Several linear and nonlinear extensions have been made on IOBPCS family but there is no production smoothing constraints on it. The extended model is more realistic and is called it NIOBPCS (Nonlinear IOBPCS). NIOBPCS has more advantages compared with IOBPCS in terms of and filtering out market demand noises, bullwhip effect reduction, less production fluctuation, and high capacity utilization.
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