In production and inventory management, spreadsheet software tool is used such activities as forecasting inventory control, production planing, and scheduling. Here an application of LOTUS 1-2-3 to the process of production planing is pursued. The pro...
In production and inventory management, spreadsheet software tool is used such activities as forecasting inventory control, production planing, and scheduling. Here an application of LOTUS 1-2-3 to the process of production planing is pursued. The products for each future period, we are to determine for each period in the planning horizon the production levels and the inventory levels that meet the required demands on products in timen and that minimize the sun of the production cost and the inventory holding cost.The production cost is composed of two factors. One is the cost of work forces during the regular work time and the other is during the overtime. The production level is represented as the workforces in the regular time and overtime in the planning horizon.
Spreadsheet models optimization models, each of which has inherent limitations when viewed in isolation, can provide powerful decision support for many practical problem when joined together. So these two models are incorporated into a decision support system in this paper so that production planning support system is developed by using LOTUS 1-2-3 as a DSS tool.
In view of the decision making process the roles of LOTUS 1-2-3 in each step are designed as follows. First, in the intelligence step, it performs a series of preliminary calculations and enables decision maker to induce several strategies about production planning. Second, in the planning horizon according to the strategy provided by decision maker. Third, it provides the opportunity to perform what-if, analysis so that it makes the user select the best strategy among the various alternatives.
This system has thr adaptive characteristic od DSS that it is expanded or modified over time.