Course syllabus
Styrning av produktionssystem och materialflöden
Management of Production and Inventory Systems
MION01, 7,5 credits, A (Second Cycle)
Valid for: 2022/23
Faculty: Faculty of Engineering, LTH
Decided by: PLED I
Date of Decision: 2022-04-11
General Information
Compulsory for: MLOG1
Elective for: E4, I4-pr, I4-lf, M4-lp
Language of instruction: The course will be given in English
Aim
The course aims to deepen the students’ knowledge and
understanding of methods for management of production and inventory
systems, both from a theoretical and applied perspective. An
important aspect is to enhance the students’ ability to structure
and manage complex tasks, processes and assignments in the form of
projects.
Learning outcomes
Knowledge and understanding
For a passing grade the student must
- be able to use advanced quantitative methods for management and
evaluation of production and inventory systems,
- show the ability to independently structure and solve project
assignments of investigative nature.
This means that the student is required to:
- understand the basic principles of the Toyota Production System
which is the basis for lean production.
- understand the challenges and impact of uncertainty and
variability on the management of manufacturing systems and to deal
with these issues through the use of relevant methods.
- understand the limitations in commonly used production control
models, and quantitative modelling of these systems. An important
issue is to be able to analyse is the strengths and weaknesses
with “Pull” oriented CONWIP systems in relation to “Push”
oriented MRP systems.
- understand the principles for hierarchical planning scheduling
and shop floor planning within a “Pull” oriented production
system. Moreover, to be able to apply quantitative models to
improve the control.
- critically examine and choose an appropriate model description
to effectively manage commonly seen production systems. A special
focus is placed on generalised KANBAN systems (CONWIP systems).
This is contrasted to the MRP based systems studied in the course
MIOF10 Production and Inventory Control.
- be able to explain, apply and evaluate different types of
quantitative models for efficient control of CONWIP systems.
- correctly perform statistical analysis of data from stochastic
processes that constitute input data to quantitative production and
inventory control models. A special focus is placed on analysis of
customer demand data and different types of process and activity
times. This involves, among other things, fitting of distribution
functions and various types of hypothesis testing.
- understand different principles for determining cost parameters
(such as holding costs, shortage costs and set up costs) commonly
used in production and inventory control models.
- be able to explain and apply quantitative models for control of
single echelon inventory systems, with uncertain demand, and/or
uncertain lead-times. This involves the computation of various
types of service levels and expected costs, and the optimisation of
control parameters like reorder points, order quantities and
order-up-to levels.
- be able to explain and apply quantitative models for control of
multi-echelon inventory systems, with uncertain demand. This
involves the computation of various types of service levels and
expected costs, and the optimization of control parameters like
reorder points, order quantities and order-up-to levels.
- be able to explain and use quantitative methods for analysis of
echelon- and installation-stock inventory control policies.
- independently manage and solve project assignments of
investigative nature with high demands on reporting/documentation
of results, both in terms of oral presentations and written
reports.
Competences and skills
For a passing grade the student must
have the skills and abilities to independently formulate, solve,
and use relevant quantitative models for analysis and control.
Concrete areas and model types that the student should master
include:
- Aggregate production planning.
- Scheduling and shop floor planning with focus on CONWIP systems
(deterministic and stochastic models).
- Stochastic models for evaluation and optimization of
single-echelon systems under different assumptions: continuous
review, periodic review, continuous normally distributed demand,
discrete compound Poisson demand, single and multi-periods,
complete backordering and lost sales, service levels (S1, S2 and
S3) and backorder costs, (R,Q), (S-1,S) and (s,S) systems,
deterministic and stochastic lead-times (dependent and
independent).
- Stochastic models for evaluation and optimization of
multi-echelon (supply chain) inventory systems under different
assumptions: serial and distribution systems, the METRIC
approximation versus exact evaluation, (S-1,S) and (R,Q) policies,
echelon-stock versus installation-stock policies.
- Methods, approaches and considerations for implementation of
inventory and production control systems.
Moreover, the student must be able to use established terms and
concepts to clearly communicate problem formulation and
interpretation of quantitative production and inventory models.
After completing the course, the student should be able to
independently read and understand literature in the field and
complement his/her knowledge as required.
For a passing grade, the student must also show ability to solve
investigative project assignments. This involves skills and
abilities in framing and solving unstructured problems. Important
aspects are problem formulation, identifying project objectives,
choose appropriate methods, and performing in depth analysis.
Furthermore, reporting project results requires skills in oral and
written presentation techniques.
Judgement and approach
For a passing grade the student must
- Understand and be able to explain the underlying assumptions
and limitations of the studied models and the trade-offs they
imply.
- Understand the need for coordination and cooperation across
functional disciplines within a company, and between companies in a
supply chain to achieve sustainable development and resource
utilization.
- Understand that shared goals, values and ethics are important
pillars in successful and sustainable operations management
together with environmental and economic considerations.
Contents
The course focuses on advanced methods for production and
inventory management, particularly advanced quantitative methods
for management of single- and multi-echelon production and
inventory systems.
The goal is to deepen and expand the students’ knowledge in
quantitative modelling of production and inventory systems both
from a theoretical and applied perspective. The starting point for
the content treated in the course is the theories and methods
studied in the course MIOF10 Production and Inventory Control. We
discuss challenges associated with applying quantitative models in
practice, for example, when it comes to determining cost
parameters, control variables and distribution fitting.
Examination details
Grading scale: TH - (U,3,4,5) - (Fail, Three, Four, Five)
Assessment: Take home exams/assignments. The examination is designed to assess the students’ ability to independently solve loosely structured problems typically found in a production-inventory environment. An important aspect is for the students to clearly communicate the results and how the problems are solved, both orally, in well structured presentations, and in writing by producing well structured technical reports.
The examiner, in consultation with Disability Support Services, may deviate from the regular form of examination in order to provide a permanently disabled student with a form of examination equivalent to that of a student without a disability.
Admission
Admission requirements:
Assumed prior knowledge: MIO310/MIOF30 Operations Research Basic Course, MIO040/MIOF25 Managerial Economics Advanced Course, MIOF10 Production and Inventory Control,
The number of participants is limited to: No
The course overlaps following course/s: MIO331
Reading list
- Axsäter S. Inventory Control, Second edition. Springer, New York, 2006.
- (available free of charge as e-book through the university library).
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- Hopp, W. J. and M. L. Spearman, Factory Physics, third edition, Irwin McGraw-Hill, New York, 2008.
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Contact and other information
Course coordinator: Professor Johan Marklund, johan.marklund@iml.lth.se
Course homepage: http://www.pm.lth.se/Education