Computer aided production planning and control system for a medium sized pharmaceutical company

Abstract

Practitioners are very well aware of the problem they are facing in the production planning area. Nowadays, there are extensive information processing equipments and powerful computers The state of art in the information processing technology enables the practitioners to apply O.R. concepts in their planning activities. This study proposes a model for production planning and control operations of a medium sized pharmaceutical company. The aim is to minimize the total cost of production and holding inventory When a resource requi rement is different than its normal avai lable time then an extra cost is also incurred. Items are independent and have external demands to be met. The opening inventory level for each product has an upper bound. The algorithm, at first disregards capacity requirements of the production and generates an initial solution. Then imposing capacity requirements, the initial solution is smoothed by applying a concept called Next Best Path to generate a better plan.