Analysis of Production Ordering Quantities and Inventory Variations in Multi-Stage Production Ordering System

Abstract

In Japanese automobile and electrical industries, it is often necessary to consider the production ordering systems as multi-stage production inventory systems. We are able to classify the multi-stage production ordering systems into two types, i.e.the push-type and the pull-type. This paper discusses the following subjects concerming the push-type multi-stage production ordering system based on forecasting : 1) the effects of forecast errors on the amplification of production order variations and inventory variations in terms of a basic production ordering model, 2) the same effects in a modified production ordering model which is able to decrease both the variations in the production ordering quantities and in the inventory at each stage.