Abstract
Previously, KURIYAMA proposed the Parts-Oriented Production Management System which solved the production efficiency problem in order to satisfy the various desires of the consumer. For improving the service ratio and reducing the stock and production setup costs, we need flexible production schedules which can sufficiently meet the diversified demand. In this paper, on the POPMS which consists of standardized component parts, we propose the modified Wagner-Whitin algorithm which introduces the cost of schedule changes and the index indicating the dead stock danger into the optimal production schedules. Furthemore, the effectiveness of the proposed model formulation is proven by the use of a numerical example.