In a hypothetical plywood plant, customer orders for the following week are received on Friday, usually 15 to 25 orders representing about 75 percent of the capacity of the plant. The basic scheduling problem is to time the production of veneers so that the right types and quantities are available when they are needed at the spreaders. The quantity available should be large enough to maintain production with a minimum of changeovers, yet small enough not to build up a large inventory which the plant cannot accommodate. Because it would be impossible for the best scheduler to go through all the scheduling alternatives in a limited amount of time, a mathematical model can be used, employing algebraic and difference equations. The plant is considered a system made up of a discrete number of components–production centers–which interact at a discrete number of points –points at which inputs are received and outputs removed. Formulating a series of equations will provide information for a schedule of inputs for a given time period, given the desired outputs for the period. It may also be used to determine the schedule at each production center and the assembly schedule at the spreaders, given the total output desired at the end of the planning horizon. Other information is also accessible–for example, the shadow prices of scarce resources, which may be used for immediate or long range expansions of these resources. The choice of a time period –such as an 8-hour shift–is an important consideration. Once information is obtained for a longer period, it can be broken down into hourly schedules if necessary.
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