Abstract
This paper deals with simultaneous determination of ordering and scheduling in a manufacturing process. The objectives of this problem are to minimize both the out-of-stock ratio and the total inventory. We propose an iterative algorithm which solves successively the respective problems for the inventory control system and the manufacturing system. Moreover, a new ordering policy is proposed in the inventory control system. In this policy, the ordering amount is determined in such a way that the minimum of margin stock ratio in all items is maximized. In the manufacturing system, the schedule is determined for that order. It is confirmed from the computational result that the proposed method outperforms the method without iteration and a periodic inventory based method.
