Materials and Processes in Manufacturing

E. Paul Degarmo, J T. Black, Ronald A. Kohser

Chapter 41 Manufacturing and Production Systems

Variability in Economic Order Quantity

The intents of this exercise are
- to provide an opportunity to use an inventory model,
- to show how much effect uncertainty can have in the use of models.

In descriptions of the mechanics of manufacturing processes the models are based on physical principles and the major complicating factors are usually the number of model variables and obtaining accurate material property data, i.e. properties at processing conditions. This material property data may be available or can be obtained at some cost. The complications introduced by increasing number of model variables was considered in the Chapter 17 exercise.

In models of other kinds of manufacturing systems uncertainty in data may be much larger, and essentially impossible to eliminate. The difficulties that arise from uncertainty in the Economic Order Quantity Inventory Model is the topic of this exercise.



© 2002 by Barney E. Klamecki, all right reserved.