Uncertainty Of Customer Demand Research Articles

ITEC: An Integrated Manufacturing Instructional Exercise

Describes an integrative microcomputer‐based exercise, ITEC, used in teaching manufacturing strategy and manufacturing planning and control courses. The exercise allows students the opportunity to gain actual experience in making strategic decisions in manufacturing and in managing the flow of materials in complex operations. It gives students experience in making process choice decisions, and reinforces their understanding of the difference between the planning and execution decisions necessary to manage manufacturing operations using MRPII planning logic under dynamic conditions. It provides experience in managing both batch and line operations and is useful in demonstrating the introduction of Just‐in‐Time manufacturing. The exercise also provides experience in scheduling and co‐ordinating vendor operations to support manufacturing requirements. Because of the uncertainty in customer demand, process yields and vendor deliveries, students gain insight and facility in managing complex operations with imperfect information. Outlines the structure of ITEC, its educational benefits, and its application within undergraduate, masters and executive education classes.

On the determination of overplanning margins for components in a consumer electronics factory

Overplanning means planning of more products than forecasted in order to handle uncertainty in customer demand. At master scheduling level it may be a way to improve the cooperation between the commercial department and the production department. In this paper, overplanning margins at master scheduling level are determined by the commercial department. On request of the production department of a consumer electronics factory, several alternatives are developed to convert these margins into overplanning margins for the preceding component level. These alternatives are investigated on their logistic performance by means of simulation. Two of these are recommended and investigated in more detail with respect to future objectives of the factory.