Optimum Product Mix Management under Multiple Batch Production Utilising a Computer Simulation Model

Production planning and control is a complex task in multiple batch production situations. Work orders arrive in a random manner and, considering the diverse product array, work centre capacities loaded and available also change in a random manner. A particular product mix may suit a particular load pattern generated and, to be realistic, the optimum product mix must be considered a dynamic parameter rather than a static one. Considering the multitude of parameters associated, it is difficult to determine the optimum product mix in a manual system. The use of a computer simulation model to determine the optimum product mix and also the criteria to be used in arriving at the pricing strategy under multiple batch production situations are discussed.