A new approach to production smoothing

Abstract

Models for production smoothing generally assume that production can be adjusted to any desired level. However, there are industries where production must be carried out at given discrete levels, for example by the opening or closure of certain facilities or by the use of shift-working. The problem is to control the operation in a way that will minimize the cost of changes in the level of production. The method explored in this paper relies on inventory levels for control purposes to trigger a switch from one production level to another. Sample results from simulation runs are cited as examples.