Syllabus academic year 2010/2011
(Created 2010-07-25.)
Credits: 7,5. Grading scale: TH. Cycle: A (Second Cycle). Main field: Technology. Language of instruction: The course will be given in English. MION01 overlaps following cours/es: MIO331. Optional for: I4, I4lp, I4mf, I4pr, M4lp. Course coordinator: Associate Professor Johan Marklund,, Production Management. Prerequisites: MIO012 Managerial Economics Basic Course, MIO030 Production and Inventory Control, FMS035 Mathematical Statistics Basic Course. Recommended prerequisits: MIO310 Operations Research Basic Course, MIO040 Managerial Economics Advanced Course. 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. Home page:

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.

Knowledge and understanding
For a passing grade the student must

This means that the student is required to:

Skills and abilities
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:

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.

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 MIO030 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.

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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Scientific research papers:
A1 Hopp, W.J. and M.L. Spearman (2004), “To Pull or Not to Pull: What is the Question?”, Manufacturing and Service Operations Management, Vol. 6 (Spring 2004), pp. 133-148.
A2 Spearman, M.L. and M.A. Zazanis (1992), “Push and Pull Production Systems: Issues and Comparisons”, Operations Research, Vol. 40 (3), pp 521-532.
A3 Hopp, W.J., Spearman, M.L. and I. Duenyas (1993), “Economic Production Quotas for Pull Manufacturing Systems”, IIE Transactions, Vol 25 (2), pp. 71-79.
A4 Krajewski, L.J., King, B.E., Ritzman L.P. and D.S. Wong (1987), “Kanban, MRP and Shaping the Manufacturing Environment”, Management Science, Vol. 33 (1), pp. 39-57.
A5 Spearman, M.L. and R.Q. Zhang (1999), “Optimal Lead Time Policies”, Management Science, Vol. 45 (2), pp. 290-295.
A6 Andersson J. and J Marklund (2000), “Decentralized Inventory Control in a Two-Level Distribution System”, European Journal of Operational Research, Vol. 127 (3), pp.483-506.