Premiere Industries

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CASE STUDY. The objective of this case is to elucidate the methods and techniques used in production planning and inventory control in a multi-echelon, multi-product setting.

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Premiere Industries: Abstract

The case depicts the problems faced by a steel rolling unit regarding production planning in the main, and, to a lesser extent, some of its concomitant processes such as inventory organization and maintenance. It also illustrates the negative effects of uncoordinated production and how these factors contribute to inventory stock piling, resulting in poor performance of the unit.

The objective of this case is to elucidate the methods and techniques used in production planning and inventory control in a multi-echelon, multi-product setting. The case provides an opportunity for the application of the principles of multi-echelon batch sizing and production planning in a uniform demand scenario. The case also provides an illustration of the calculation of the set-up costs of operations using production data.

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Teaching notes are available for teachers only. Contact the HEC Montréal Case Centre for more information.

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