A dynamic inventory-production scheduling model for small scale organisations.

A production scheduling model based on the minimisation of inventory costs is proposed for small scale organisations . This is an interactive model characterised by its ability to cope with continuous changes in production and demand conditions. The model is built on the foundation of the Wagner-Whitin algorithm, and has incorporated factors of safety stock, economic batch quantity, production capacity and past forecast accuracy in inventory and production scheduling. It has been implemented in a computer programme and tested within a company. Results show that by using this model substantial savings can be achieved in inventory costs. [ABSTRACT FROM AUTHOR]