Syllabus 2011/2012 MIOF10

Syllabus academic year 2011/2012
(Created 2011-09-01.)

PRODUCTION AND INVENTORY CONTROL

MIOF10

Credits: 7,5. Grading scale: TH. Cycle: G2 (First Cycle). Main field: Technology. Language of instruction: The course will be given in English. MIOF10 overlaps following cours/es: MIO030. Optional for: E4, E4pe, I4, I4lp, I4mf, I4pr, M4lp, M4pr. Course coordinator: Assistant Professor Fredrik Olsson, fredrik.olsson@iml.lth.se, Production Management. Recommended prerequisits: MIO012/MIOA01 Managerial Economics Basic Course, FMS012 Mathematical Statistics Basic Course (or equivalent). Assessment: Individual written exam. For a passing grade it is required (in addition to a passing written exam) that mandatory assignments are completed. The assignments are solved independently in groups of 2-3 students. Home page: http://www.pm.lth.se.

Aim
The course aims to provide basic knowledge regarding management, control and design of production-inventory systems. It presents a range of different quantitative and non-quantitative methods and procedures used for efficient production and operations management.

Knowledge and understanding
For a passing grade the student must

have knowledge and understanding in the following areas:

Organization of production systems
Different production environments, classifications and concepts
Planning and design of the production system
Production control systems
Forecasting methods
Inventory control subject to known demand
Inventory control subject to stochastic demand
Different ordering systems
Material requirements planning (MRP)
MRP II
Operations scheduling
Push and pull production control systems
JIT
Lean production
Project scheduling
Capacity planning
Kanban systems
Aggregate planning
Detailed shop floor planning
Implementation

Skills and abilities
For a passing grade the student must

be able to individually design production and inventory systems under different assumptions
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:

forecasting methods
(S-1,S), (s,S) and (R,Q) ordering policies
the theory behind the EOQ formula
the Silver-Meal heuristic
the Wagner-Whitin algorithm
different cost structures
service level concepts
demand processes
cyclic scheduling
multi-echelon inventory systems
the theory behind MRP
Johnsons algorithm
strategies of push and pull production systems
aggregate planning

Contents
Introduction, Classifications in production management, Design of products, Network scheduling, Design of the production system, Line balancing techniques, Production processes and flows, The production control system, Cycle time and capacity analysis, Theory of constraints, Forecasting, Ordering systems, Batch quantities, Alternative lot sizing schemes, Safety stocks, Service levels, Multi-echelon systems, Material requirements planning, Coordination of orders, Cyclic schedules, Implementation, Aggregate planning, Detailed planning, Dispatch rules, Feedback control, Quantitative techniques in different areas.

Literature
Axsäter, S., Inventory Control, Springer, 2006. (e-book for LTH students)
Nahmias, S., Production and Operations Analysis, McGraw-Hill, 2009.
Compendia