Analysis of production as a closed self-regulating system

Abstract

Abstract Production management is concerned with the efficient transformation of inputs into desired outputs. Usually the operations are carried out under conditions of uncertain and fluctuating customers’ demand, varying procurement lead times for difference inputs, and the necessity to fix the production schedules long before the magnitude and the mix of the orders that must be filled from the resulting output can be determined. Under certain conditions it is possible to view production of this kind as a closed, self-regulating system which may be studied using some common techniques and procedures. In this paper we define such an operation in terms of several difference equations which describe the behaviour of a simple coupled production inventory system. It is shown that the coupling arises from the fact that the equations are both functionally and time-wise inter-dependent. A single equation of motion is developed to describe the dynamic behaviour of the system. Analysis ofthe equation shows that pr...