Proposed production/inventory control system for a medium-sized pharmaceutical company

Abstract

Examines the production/inventory control system used at Beecham Pharmaceuticals on the basis of the theory of production/inventory control. The basic starting point of any production control system is identified as a forecast of customer demand. The study addresses the questions of how much should be ordered and when the replenishment order must be placed. Aggregate planning, scheduling and dispatching are also discussed. The importance of the availability of timely, accurate information is stressed. The report examines the production/ inventory control system in operation at Beecham Pharmaceuticals. The relevant theory is applied in an attempt to improve the efficiency of the system. Examination of the system reveals that it is generally based on sound principles. Application of certain theoretical models indicates that there are three major areas where the Beecham production/ inventory control system could be improved.