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The Capacity Aspect of Inventories (Paperback, 1986 ed.)
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The Capacity Aspect of Inventories (Paperback, 1986 ed.)
Series: Lecture Notes in Economics and Mathematical Systems, 267
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Controlling the production in an industrial organisation is very
complex. There are two different reasons for this complexity. On
the one hand, complexity is due to the variety in range and in
level of detail of the activities that playa role in such a control
(think of manufacturing process development, capacity planning,
coordinating the flow of material through the production process,
releasing of workorders, and scheduling). On the other hand, the
production process itself may be complex (many products, many
stages, complex interrelationships between resources, and
uncertainty in the availability of resources). To deal with the
first cause for complexity, one creates different, but coordinated
levels of control. At each of these levels a specific part of the
control of the production process is accounted for (see Anthony
[3]). To deal with the second cause for complexity, one groups
manufacturing steps into so-called production units (see Bertrand
[8]). Each production unit is responsible for a specific part of
the production process. Of course, these production units have to
be coordinated to ensure that the products are manufactured timely
and efficiently. This activity will be referred to as material
coordination (see Bertrand [8]).
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