Bule-Hora University,

College of Business and

Economics,
Department of LSCM.

By Mr. EBISA H.
10/16/2025 1
 PART THREE
OPERATION PLANNING AND CONTROL

• Forecasting
• Aggregate production planning
• Material Requirement Planning
• Operations Scheduling

10/16/2025 2
What does it mean by forecasting?
• A forecast is a prediction of what will occur in the future.
• They give operation managers a rational basis for
- budgeting,
- capacity planning,
- sales ,production and inventory,
- personnel and material management.

- Forecasting is the basis of planning ahead even though

the actual demand is quite uncertain.
- It involves estimation of the future, and of particular
interest here is the expected demand of company’s
product.
An Important Input to Decision Making

• A demand forecast is essential for

The determining how much supply will
primary be needed to match demand:
goal • Budget preparation
operations • Capacity decisions (e.g., staff and
and supply
chain
equipment)
managem • Purchasing decisions
ent is to
match
supply to
demand
 Uses of Forecasts

Accounting Cost/profit estimates

Finance Cash flow and funding

Human Resources Hiring/recruiting/training

Marketing Pricing, promotion, strategy

MIS IT/IS systems, services

Operations Schedules, MRP, workloads

Product/service design New products and services

 Characteristics of forecasts
i. Forecasting techniques generally assumes that the same
underling causal system that assisted in the past will
continue to exist in the future.
ii. Forecasts are rarely perfect; actual results usually differ
from predicted values.
iii. Forecasts for a group of items tends to be more accurate
than forecasts for individual item, because forecasting
errors among items in a group usually are smaller than
that of individual items.
iv. Forecast accuracy decreases as the time period covered
by the forecast-time horizon increases.
 Elements of a Good Forecast

The forecast
• should be timely
• should be accurate
• should be reliable
• should be expressed in meaningful units
• should be in writing
• technique should be simple to understand and use
• should be cost effective
Steps in the Forecasting Process

“The forecast”

Step 6 Monitor the forecast

Step 5 Prepare the forecast
Step 4 Gather and analyze data
Step 3 Select a forecasting technique
Step 2 Establish a time horizon
Step 1 Determine purpose of forecast
 Techniques of forecasting

• There are two types of forecasting technique.

They are:
i. Qualitative forecasting techniques
ii. Quantitative forecasting techniques
Qualitative/ Judgmental forecasting techniques

 is a technique that is used when there is no

historical data available about past performance.
 These forecasting techniques are subjective and
judgmental in nature and most of the time they are
based on opinion and expertise judgment.
 Qualitative forecasting techniques rely on analysis
of subjective inputs obtained from customers, sales
Person, managers and experts.
 Qualitative Methods

Executive expert Consumer

opinions survey
Qualitative
Methods
Sales force opinion
 Quantitative forecasting techniques

There are two types of quantitative forecasting

techniques:
 Time series analysis
 causal methods
 A time series is a set of some variable (demand)
overtime (e.g. hourly, daily, weekly, quarterly
annually).
Time series analyses are based on time and do not
take specific account of outside or related factors.
Forecasting techniques based on time series data
are made on the assumption that history follows a
pattern that will continue.
 Types of time-Series Forecasting

i. Naive forecasts
ii. Simple Moving average
iii. Weighted moving average
iv. Exponential smoothing
I. Naive forecasts
The simplest way to forecast is to assume that demand in the
next period will be equal to demand in the most recent period.
Example: if the actual demand of car is 60 units on Monday, the
forecasted demand for Tuesday will be 60 units. Does this make
sense? At least it provides a starting point against which more
sophisticated models that follow can be compared.
 Simple Moving average
• A simple moving average is obtained by summing and averaging values from a
given number of periods repetitively, each time deleting the oldest value and
adding the new value.
At  1  At  2  At  3  ...  At  n
SMA Ft 
n
n

A t i
SMA Ft  i 1
n

Where
 SMA – simple moving average
 Ft - Forecast for period t
 At-i - Actual demand in period t-I
 n - Number of periods (data points) in the moving average

• Simple moving average is preferable if the demand for a product is neither growing nor
Example1:
A food processor uses a moving average to forecast next month’s demand.
Past actual demand (in units) is shown in the following table

Month 1 2 3 4 5 6 7 8

Actual 105 106 110 110 114 121 130 128

demand

Required
a. compute a simple 5 month moving average to forecast demand for
month 9
b. Find a simple 5 month moving average to forecast the demand for
month 10 if the actual demand for month 9 is 123.
 Solution

SMA=F9= 128  130  121  114  110

5

= 120.6

Therefore, the forecasted demand for month 9 is 120.6.

SMA10 = F10 = 123  128  130  121  114

5
There fore, the 5 month moving average forecasted demand for month 10 is 123.2
• Note: In moving average, as each new actual value
becomes available, the forecast is updated by adding the
newest value and dropping the oldest value and computing
the average. Consequently the ‘forecast’ moves by
reflecting only the most recent values.

Advantage
 easy of computation
 easy of understanding
Disadvantage
 All values in the average are weighted equally. The oldest value has the
same weight as the most recent value.
Example2:
Sunrise Bakery makes cakes and supply to the market. The following data
shows their daily demand for the last four weeks. The bakery is closed on
Saturday. So Friday’s production must satisfy demand for both Saturday and
Sunday.
4 weeks ago 3 weeks ago 2 weeks ago Last week

Monday 200 400 300 400

Tuesday 200 100 100 300

Wednesday 300 400 300 500

Thursday 800 900 400 100

Friday 500 200 300 400

Saturday 800 700 600 500

Sunday
Total 2800 2700 2000 2200
 Required: Make forecast for this week on the following basis

.
a. Daily, using a simple four week moving average?
b. Daily, using a simple three week moving average?
c. Weekly, using a simple four week moving average?
d. Weekly, using a simple three week moving average?
 Solution
a. Daily Simple four-week moving average
Monday, F monday= 400  300  400  200 325
4
300  100  100  200
175
Tuesday F Tuesday = 4
• Wednesday, Fwednesday = 1500/4 = 375

• Thursday, Fthursday = 2200/4 = 550

• Friday, Ffriday =1400/4 = 350

• Sat. & Sunday, FSat & Sunday = 2600/4 = 650

b) Daily Simple three week moving average

400  300  400 1100

 367
• Monday, F monday = 3 3

300  100  100 500

 167
• Tuesday F tuesday = 3 3

• Wednesday, F wednesday = 1200/3 = 400

• Thursday, F thursday = 1400/3 = 467
• Friday, F friday = 900/3= 300
• Sat. & Sunday, F Sat & Sunday = 1800/3 = 600
c) Weekly, using a simple four week moving average?
Fnext week =
2800  2700  2000  2000  2200
2425
4

d) Weekly, using a simple four week moving average?

Fnext week=
2200  2000  2700
2300
3
 B) Weighted Moving average

 In the previous topic we have discussed about the

simple moving average which gives each value to
be weighted equality.
 Now let’s see weighted moving average which
allows each data value to be weighted differently.
 In weighted moving average, the weight is given
in such a way that more weight is given to the
most recent value in the time series.
 Weights can be percentages or any real numbers.
In weighted moving average, forecasts are calculated by

Ft = WMA = W1At-1+[Link]-2+… +W n .A t-n

A
i 1
t 1 .Wi

Where
 Ft =forecast in time t
 WMA = weighted moving average
 W = weight
 A = Actual demand value
Example 1
A department store may find that in a four month period the best forecast is
derived by using 40% of the actual demand for the most recent month, 30%
two months ago, 20% of three months ago and 10% of four months ago. The
actual demands were as follows.

Month Month 1 Month 2 Month 3 Month 4

Demand 100 90 105 95

a) Compute weighted 4-month MA for month 5

WMA = 95x0.4+105x0.3+90x0.2+100x0.10
= 97.5 units
b) Suppose the demand for month 5 actually turned
out to be 110. Compute forecast for month 6.

F6 =WMA = 0.4x110+0.30x95+0.2x105+0.1x90
F6 = 102.5 units.
 Example2:
Sunrise Bakery makes cakes and supply to the market. The following data
shows their daily demand for the last four weeks. The bakery is closed on
Saturday. So Friday’s production must satisfy demand for both Saturday and
Sunday.
4 weeks ago 3 weeks ago 2 weeks ago Last week Total

Monday 200 400 300 400

Tuesday 200 100 100 300

Wednesday 300 400 300 500

Thursday 800 900 400 100

Friday 500 200 300 400

Saturday 800 700 600 500

Sunday
Total 2800 2700 2000 2200

Daily basis forecast for this week

Require: make a daily basis forecast for this week using a weighted average of 0.40 for last
week, 0.30 for two weeks ago, 0.20 for three weeks ago and 0.10 for four weeks ago?
 Answer
4 weeks ago 3 weeks ago 2 weeks ago Last week Total

Monday 200 400 300 400 350

Tuesday 200 100 100 300 190

Wednesday 300 400 300 500 400

Thursday 800 900 400 100 420

Friday 500 200 300 400 340

Saturday 800 700 600 500

Sunday 600

Total 2800 2700 2000 2200 2300

 Simple exponential smoothing

In the exponential smoothing method only

three pieces of data are needed to forecast
the future the most recent forecast, the
actual demand that occurred for the forecast
period, and a smoothing constant alpha.
Ft = Ft-1 + (At-1-Ft-1)
 Example 1
In February a car dealer predicted demand March 142 autos, but in March demand
was turned out153 autos. Using a smoothing constant chosen by management of
auto dealer  =0.2, forecast April demand.
New forecast (April demand) =Ft = Ft-1 + (At-1-Ft-1))
=142 + 0.2(153-142)
=144.2
 Example 2: Demand during the past six months have been as
follows:

January 115

February 123

March 132

April 134

May 140

June 147

Required:
• Using simple exponential smoothing with  = 0.70, if the forecast for January
had been 110, compute the exponentially smoothed forecasts for each month
through July.
 Solution
F Feb. = F Jan. +  ( A Jan. –F Jan.)
= 110+0.7(115-110)
= 113.5

F March. = F Feb.. +  (A Feb.. – F Feb.)

= 113.5+0.7(123-113.5)
= 120.15

F April. = F March. +  (A March. –F march)

= 120.15+0.7(132-120.15)
= 128.445
 Solution cont’d…
F May = F April. +  (A April. –F April)
= 128.445+0.7(134-128.445)
= 132.33
F June. = F May. +  (A May –F may.)
= 132.33+0.7(140-132.33)
= 137.699
F July = F june. +  (A june –F june.)
= 137.699+0.7(147-137.699)
= 144.2097
Exponential smoothing is the most widely used of all forecasting
techniques, because
– Exponential forecasting models provide closer
forecasts to actual demand.
– Formulating an exponential smoothing model is
relatively easy.
– The user can easily understand the model
– It requires little computation
– It requires only three pieces of data
The most recent forecast
 The actual demand of the previous
period
The smoothing constant, 
 2. Casual forecasting methods
• The second type of quantitative forecasting technique is casual forecasting
method.
• Casual forecasting techniques rely on identification of related variables
that can be used to predict values of the variable of interest (demand).
• Casual methods are used when historical data are available and the
relationship between the factor to be forecasted.
Example
1. Sales of beef may be related to
- Price for bee
- Price of substitutes, such as chicken, pork, lamb

2. Real estate prices are usually related to

- Property location
- Square footage
3. Crop yield are related to
- Soil conditions
- Amounts and timings of water
- Fertilizer application
 Regression and Correlation Methods

 Regression and correlation techniques are means of

describing the association between two or more
variables.
 More specifically, regression and correlation methods
are related to the following issues
- Bringing out the nature of relationship between any two
variables, say X and Y
- Measuring the rate of change in one (the dependent) variable
associated with a given change in the other (independent)
variable.
- Evaluating the strength of the relationship and quantifying the
closeness of such relationship.
 Regression

• It is concerned about two issues, i.e.

- Brining out the nature of relationship between any two
variables.
- Measuring the rate of change in one (the dependent)
variable associated with a given change in the other
(independent) variable.
• Regression means ‘dependence’ and involves
estimating the value of a dependent variable, Y, from
an independent variable X.
• There are two types of regression
» Simple regression
» Multiple regression

• In simple regression only one independent

variable is used, and the general form of this
simple regression is Y = a + bx.
• Where as in multiple regression two or more
independent variables are involved, and multiple
regressions take the general form of
Y = a + bx1 +bx2 + bx3 + … + Zxn
 Simple Linear regression and correlation

• In simple linear regression, only one

independent variable is used and the model
takes the form

Y = a + bx
Where
Y = predicted (dependent) variable, demand
a = value of Y at X = 0
b = slope of the line

Note:
It is convenient to represent the values of the predicted variable on the Y-axis and values
of the predictor variable on the [Link] coefficients a and b of the line are obtained by
using the formula
a = y - bx

b=
 xy - n( y)( x )
 x - n( x )
2 2
 Example
Meta brewery factory sell draft to the Addis Ababa
Market. The companies have found that its sales
volume of draft is dependent on the Addis Ababa
area construction employees.
That is as the number of construction employees’
increase they generate more money and use more
drafts.
The following table lists Meta brewery’s revenues
and the amount of money
earned by wage by construction employees in Addis
during the past six months.
Meta brewery’s management wants to establish a
mathematical relationship to help predict sales. First
it needs to determine whether there is a straight line
(linear) relationship between construction employees’
wage and sales,
so it plots the known data on a scatter diagram. It
appears from the six data points that there is a slight
positive relationship between the independent
variable (wage) and the dependent variable (sales)
as wage increases, Meta brewery’s sales tend to be
higher.
Simple Linear Regression Formulas for Calculating
“a” and “b”

a = y - bx

b=
 xy - n( y)( x )
 x - n( x )2 2
 51.5  6 32.5
b 0.25
 
80  6  3 2
 Accuracy and Control of Forecast

• Forecasting accuracy relates to the magnitude

of forecasting error
Forecasting error at time t Actual demand at time t - Forecasted demand at time t

et = At - Ft
We have three possibilities for the forecast error (et) It can be positive, 0 or negative
I f At > Ft  et is positive
 If At < Ft  et is negative
 If At = Ft  et is 0
 Aggregate production planning

Nature of APP

APP Aggregate planning is an intermediate

term planning decision. It is the process of
planning the quantity and timing of output
over the intermediate time horizon (6 to 18
months).
It is an intermediate planning method used to
determine the necessary resource capacity , a
firm will need in order to meet its expected
DD
 Production rate – refers to the quantity of product completed
per unit of time
 Work force level – the number of workers needed for
production
 Inventory on hand – occurs when the number of units
produced in any given periods exceeds the demand.
 Back logs (stock out) – occurs when demand exceeds the
production
 Objectives of APP
i. minimizes the total production related cost (efficiency
objective)
ii. Meet the forecasted demand (effectiveness objective)
 Inputs and out puts of APP
 Inputs – effective APP requires good information

1. Available resources over the planning period

– Work force
– Production
– Facilities/equipments

2. Forecast of expected demand

3. Policies on work force change
4. Costs
 Basic production cost – variable and fixed cost incurred
in producing a given product type in a given time
period. Included are, material costs, direct and indirect
labor cost, regular and overtime compensation rate.
 Inventory holding cost – cost of capital tied up in
inventory, storage, insurance, taxes, spoilage,
obsolescence cost
Back log (a stock out) cost – expediting cost, loss of customer good will, loss of
sales revenue.

Outputs
Total cost of a plan
Projected level of
 Inventory
 Output
 Employment
 Subcontracting
 Backordering
 Aggregate production planning strategies
 Aggregate planning strategies can be described as proactive,
reactive or mixed.
1. Proactive strategies – involve demand options, they attempt
to alter demand so it matches capacity.
– The basic demand option includes
a. Influencing demand – when demand is low a company can try to
increase demand through advertising, increased personal selling,
price cut

b. Back orders- order for goods/service that a firm accepts but is

unable to fill at the moment. Back orders works only if customers
are willing to wait or cancel their order.

c. New demand
2. Reactive strategies – involves capacity decision, attempt to
alter capacity so that it matches demand, the basic capacity
(supply) options includes:
i. Level strategy – maintain a stable work force working at a
constant output rate. Variations in demand are meeting by using
some combination of
» Inventory
» Order backlogs
» Over time
» Part time workers
» Sub contracting
ii. Chase strategy – match the production rate to meet the order by
hiring and laying off employees as the order rate varies.
Advantages-
• Investment in inventory is low
• Labor utilization is kept high
Disadvantages
- The cost of adjusting output rates and/or workforce levels
 3. Mixed strategies
Mixed strategy Involves an element of each
of the above approaches combinations of
proactive and reactive strategies.
Example 1 : Planners for a company that makes several model
of skate boards are about to prepare the aggregate plan that
will cover six periods. They have assembled the following
information

Period 1 2 3 4 5 6 Total
Forecast 200 200 300 400 500 200 1800

Costs
Output
Regular time= $2 per skate board
Over time = $3 per skate board
Subcontracting = $6 per skate board
Inventory = $1 per skate board per period
Back orders = $5 per skate board per period
• They now want to evaluate a plan that calls for a steady rate of regular time- output,
mainly using inventory to absorb the uneven demand but allowing some backlogs.
Overtime and subcontracting are not used because they want steady output. They
intend to start with zero inventories on hand in the first period. Assume a level output
rate of 300 units (skate board) per period with regular time. There are 15 workers and
each can produce 20 skateboards per period.
Required
– Prepare an aggregate plan and determine its cost
Period 1 2 3 4 5 6
Forecast 200 200 300 400 500 200
Solution
Output (regular) (capacity 300 300 300 300 300 300
)

Output – forecast 100 100 0 (100) (200) 100

Inventory
Beginning 0 100 200 200 100 0
Ending 100 200 200 100 0 0
Average 50 150 200 150 50 0
Back logs 0 0 0 0 100 0
Cost plans

Period 1 2 3 4 5 6 Total

Output

Regular time $600 600 600 600 600 600 3600

Over time - - - - - - -

Sub contracting - - - - - - -

Inventory 50 150 200 150 50 0 $600

Back orders 0 0 0 0 500 0 $500

Total $650 750 800 750 1150 600 4700

 Example 2
A firm is engaged in production of video telephones for the home market. The firm
needs to develop an aggregate production plan for the six months from January
through June. As you can guess you have been commissioned to create the plan. The
following information is available to help you.
Period Jan. Feb March April May June
Demand
data
Forecasted 300 600 650 800 900 800
demand
Cost data
 Holding cost = $10/unit/month
 Stock out cost= $20/unit/month
 Subcontracting cost/unit=$100
 Hiring cost/worker =$50
 Layoffs cost/worker--- 100
 Labor cost/hr---------straight time $12.50
 Labor cost/hr ----- over time = 18.75
Production
data
 Labor hours/unit= 4
 Work days per month=22
 Current work force =10
Require. What is the cost of each of the following strategy?
A. Chase strategy vary work force (assuming a starting work force of
10)
B. Level strategy Constant work force vary inventory only assuming a
starting work force of 10)
C. Level workforce of 10 vary over time only inventory carry over
permitted
D. Which strategy is the least cost provider?
Solution
A . Chase strategy vary work force (assuming a starting work force of 10)

Month Forecasted Production hrs Hrs/month/ Number of Hire Fire

demand required worker worker
Jan 300 300*4=1200 22*8=176 7 0 3

Feb. 600 600*4=2400 22*8=176 14 7 0

March 650 650*4=2600 22*8=176 15 1 0
April 800 800*4=3200 22*8=176 18 3 0
May 900 900*4=3600 22*8=176 20 2 0
June 800 800*4=3200 22*8=176 18 0 2
Cost plans
Month Hiring cost Lay off cost Labor cost-regular Total cost
time
Jan 0 $300 $12.5*1200=15000 15300
Feb 7*50=350 0 12.5*2400=30000 30350
March 1*50=50 0 12.5*2600=32500 32550
April 3*50=150 0 12.5*3200=40000 40150
May 2*50=100 0 12.5*3600=45000 45100
June 0 2*100=200 12.5*3200=40000 40200
Total 650 500 202500 $203,650
B. Level strategy Constant work force vary inventory only assuming a starting work
force of 10
Month Forecasted Output (production Difference Inventory
dd rate)
Jan 300 Production level 375 375
=[Link]
=4050÷6 675
Feb 600 675 75 450
March 650 675 25 475
April 800 675 -125 350
May 900 675 -225 125
June 800 675 -125 0
Plan Cost

Month Labor cost- regular time Holding cost Total cost

Jan $12.5*1760=22000 375*10
Feb $12.5*1760=22000 450*10
March $12.5*1760=22000 475*10
April $12.5*1760=22000 350*10
May $12.5*1760=22000 125*10
June $12.5*1760=22000 0
132000 17,750 149,750
 C. Level workforce of 10 vary over time only inventory carry over permitted

Month (in hrs) (in hrs) (in hrs) Level of

Required time Available time Over time inventory
Jan 300*4=1200 8*22*10=1760 0 560 (140 units)
Feb 600*4=2400 8*22*10=1760 80 0
March 650*4=2600 8*22*10=1760 840 0
April 800*4=3200 8*22*10=1760 1440 0
May 900*4=3600 8*22*10=1760 1840 0
June 800*4=3200 8*22*10=1760 1440 0
Cost plans
Month Labor cost- regular Over time cost Inventory cost Total cost
time
Jan 1760* $12.5=22000 0 1400
Feb 1760* $12.5=22000 80*18.75=1500 0
March 1760* $12.5=22000 840*18.75=15750 0
April 1760* $12.5=22000 1440*18.75=27000 0
May 1760* $12.5=22000 1840*18.75=34500 0
June 1760* $12.5=22000 1440*18.75=27000 0
132000 105750 1400 239,150
d) Strategy “B” is the least cost provider which
is equal to 149,750
Material requirement planning (MRP):
Material requirement planning (MRP): determines the
number of subassemblies, components and raw materials
required and their build dates to complete a given number
of end products by specific date.
MRP is designed to answer three questions:
• What is needed?
• How much is needed? and
• When is it needed for dependent demand
items?
Dependent and independent demand

Independent Demand:
Finished Goods

Dependent Demand:
B(4) C(2) Raw Materials,
Component parts,
Sub-assemblies, etc.
D(2) E(1) D(3) F(2)
 MRP - INPUTS AND OUT PUTS

it is computer based, some discussions of the inputs and out

puts is necessary for a complete understanding of how MRP
works. The three major inputs are
• The master production schedule: tells what products a
manufacturer will produce, when and in what quantities.
(independent demand).
• The bill of materials or product structure: listing of all of
the assemblies, sub assemblies, parts, and raw materials
and the quantities of each that are needed to produce one
unit of a finished product.
• The inventory record file: tells how much inventory is on
hand or on order
The outputs are the decisions resulting from
the use of the MRP system. Specifically, these
decisions are
• Which parts to orders
• How many to order; and
• When to order
 EXAMPLE
• Product M is made of two units of two units of
N and three of P. N is made of two units of R
and four units of S. R is made of one unit of S
and three units of T. P is made of two units of
T and four units of U.
• A. show product structure tree and
• B. If 100 Ms are required, how many
components of each unit is required?
 Answer
M

N(2) P(3)

R(2) S(4) T(2) U(4)

S(1) T(3)
• N= 100X2 = 200 units
• P= 100 X 3=300 units
• R= 200 X 2 = 400 units
• S1 = 200X 4 = 800 units
• S2 =400 X 1= 400 = 1200 units
• T1 400 X 3 =1200
• T2 300 X 2 = 600 = 1800 units
• U = 300 X 4 = 1200 UNITS
 Scheduling
 Scheduling involves allocating workloads to
specific work centers and determining the
sequence in w/h operation is to be performed.
Scheduling: what are the start and finish times
of each job?
 Loading; which department is going to do what
work?
 Sequencing; what is the order in which the work
will be done?
Scheduling Rules
There are several rules that can be used to find the order of processing
the jobs. However, we will study the following three scheduling rules in
this section.
• First come first served (FCFS). The jobs are processed in the
order in which they arrived at the machine.
• Shortest processing time (SPT). This is also called as shortest
operation time. Among jobs on hand, the job that requires the
minimum processing time is processed first and then the other
jobs are processed in the ascending order of their processing
times.
• Earliest (shortest) due date (EDD). The job that has the smallest
due date is processed first and then the other jobs are processed
in the ascending order of their due dates.
• Objective function
• Job flow time The amount of time from when a job arrives until it is
finished.
• flow time = waiting time + Processing time
• Job lateness ( past due ) is the amount of time the job completion
date is expected to exceed the date the job was due or promised to a
customer.
• Tardiness= flow time – due time.
• Job lateness is the amount of time the job completion date is
expected to exceed the date the job was due or promised to a
customer.
• . Tardiness= flow time – due time.
• Make span; summation of processing time of each job.
Calculation of Objective Functions
 Average flow time: Add flow times of all jobs and divide it
by the number of jobs.
 Average tardiness: Add tardiness of all jobs (including zero
tardiness) and divide it by the number of jobs (including
jobs with zero tardiness).
 Maximum tardiness: This is the maximum of all numbers in
the tardiness column.
 Number of tardy jobs: Count the number of jobs that are
tardy.
Consider the example given in Table. There are five jobs A, B, C, D, and
E. A is the first job that arrived in the production department. B, C, D, and
E followed A in this order. The processing times and due dates of all jobs
are also given. The order in which these jobs have to be processed needs
to be specified.
Days

Job Processing Time Due Date

A 17 45

B 12 35

C 22 27

D 18 54

E 26 47
• FCFS: The order of processing is A, B, C, D, and E. In addition to the data
given in above Table, we have added the flow time and the tardiness of
each job in next Table . A is the first job to be processed. It will start at
time zero and will be completed at time 17 because its processing time .
Job Time Due Date Flow time Tardiness [0 if
negative]
A 17 45 17 0

B 12 35 29 0

C 22 27 51 24

D 18 54 69 15

E 26 47 95 48

Make span 95 Total 261 87

• Average flow time 52.2 days
• Average tardiness 17.4
• Maximum tardiness 48
• Number of tardy jobs 3
• SPT Rule The jobs are processed in the increasing order of their
processing times when using the SPT rule. The job with the minimum
processing time B (12) is processed first.
Job Time Due Date Flow time Tardiness
B 12 35 12 0
A 17 45 29 0
D 18 54 47 0
C 22 27 69 42
E 26 47 95 48
Total 252 90

Average flow time 50.4

Average tardiness 18
Maximum tardiness 48
Number of tardy jobs 2
• B (12) is followed by A (17), D (18), C (22), and E (26). Above Table
shows the ordering of jobs (under the column Job). The calculations of
the objective functions follow the same procedure as described for the
FCFS rule.
• EDD Rule
• The jobs are processed in the increasing order of their due dates.
The job with the minimum due date C (27) is processed first, and is
followed by B (35), A (45), E (47), and D (54).
Next Table shows the ordering of jobs (under the column Job). The
calculations of the objective functions follow the same procedure as
described for the FCFS rule.
• Note: It should be noted that make-span is the same (95) for all
scheduling rules discussed above. Therefore, minimizing make-span
is not used as a criterion in single-machine problems as mentioned
earlier.
Job Time Due Date flow time Tardiness

C 22 27 22 0

B 12 35 34 0

A 17 45 51 6

E 26 47 77 30

D 18 54 95 41

279 77

Average flow time 55.8

Average tardiness 15.4
Maximum tardiness 41
Number of tardy jobs 3
END OF THE LECTURE