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A study of the integration of the functions of production and quality control is presented. These functions include for example production lot sizing, assignment under a classification scheme and inspection. Integration of these proceedures is necessary to reduce costs and product defects. A model for a suitable integrated system is presented and suggestions for future research into the issues.

The success of flexible manufacturing systems (FMS) in production management applications has prompted a review of available literature regarding the topic. The aim of the review is to establish existing FMS model applications and to determine the direction of future research work. An appropriate classification scheme has also been developed for identifying literature theory and practice.

A case study is conducted to examine the application of multi-stage production inventory systems. The study focuses on the problem of economic lot sizing and considers the multi-level case for a rayon yarn firm. A multi-level lot sizing model is then applied to the problem. Results show that the model's application minimize costs in setting up and in developing in-process inventory.