ABSTRACT
In this chapter, we first discuss, in Sections 2.1 and 2.2, the complexity of inventory management and production planning and scheduling decisions (even without considering interactions with other functional areas, as outlined in Section 1.3 of Chapter 1). Then, in Sections 2.3 through 2.5, we present various aids for coping with the complexity. Section 2.6 discusses costs and other relevant variables. Sections 2.7 and 2.8 provide some suggestions concerning the use of mathematical models. Sections 2.9 and 2.10 are concerned with two very different approaches for estimating relevant cost factors identified earlier in the chapter. Finally, Section 2.11 provides a detailed look at the process of a major study of inventory management or production planning and scheduling systems.
