The Design of Production and Inventory Systems for Multifacility and Multiwarehouse Companies

This paper presents an overall structure for the design of combined production and inventory systems. The suggested approach is a synthesis of several recent applications in large-scale manufacturing companies. The paper lists a comprehensive set of questions whose answers serve to characterize the complete systems design. A three-phase program is outlined for conducting an inventory and production systems analysis, design, and implementation project. The paper treats in some detail the component steps to be followed at each phase, the management functions that must be included in a workable design, and the usefulness of operations-research techniques in such computer-based systems.