A perspective of material management practices in fast developing economy: The case of Malaysia

Production management in this research is concerned with three key decisions: demand forecast, production scheduling and stock forecast. These three decisions are very much interrelated and cannot be made in isolation. Previous studies of precast concrete industry activities concluded that poduction management is fragmented. For example, production planning is done in isolation from demand forecasting and from stock forecasting. This has contributed to poor production management performance in terms of resource utilization and over-stocking. This paper goes beyond traditional production management theories and practices and develops a model to integrate all aspects of production management. The main objective is to develop an integrated production management model for the make-to-stock sector of precast concrete building products, in order to help production managers make better planning decisions and explore alternative options. The model is a factory simulator which examines and evaluates the effect of several managerial strategies on production planning and stock forecasting before actual production commences. It uses different measures of performance which facilitate the choice of planning strategies under various demands and factory conditions.