Modeling of Control Loop in Production Scheduling for Overall Inventory Cost Reduction

Performance of manufacturing organization depends on production scheduling which is an essential part of the management of production systems. Effective scheduling can lead to performance which results in reducing work in process inventories [1]. According to the lean production principles, excessive production and high inventory level are the biggest waste in production process [2]. Inventory level higher then it is necessary for fulfilling the costumer demands, leads to additional costs in warehouse. Objectives of production control are graphically represented over time in diagrams: inventory, lead time, input orders and output of production process. In this paper, the fact that the input and output amount of work coming from released orders of one product are not equal in every period, results with a technique to balance input against output continuously, to establish a control loop.