PRODUCTION CAPACITY PLANNING AND CONTROL IN MULTISTAGE MANUFACTURING

This paper develops a mathematical model for determining the optimum l ot-sizes for a set of products and the capacity required to produce th em in a multi-stage production system. The purpose of the modelling is to support capacity planning at the production function level and the basic criterion considered for the optimisation is the minimisation o f the total system cost (TSC) per unit time. The TSC consists of (i) s et-lip cost, (ii) cost due to the quenching of batches, and (iii) hiri ng cost of the machines. An example is presented to explain the model.