MODELLING OUTPUT AND DEMAND CHANGES IN MANUFACTURING INDUSTRIES WITH TECHNOLOGY AND INFORMATION CONSTRAINTS

Abstract

The importance of information and modem technology to an organization cannot be over emphasized. This work is aimed at developing a model that can be useful in ascertaining when output will meet demand at any particular technology and information/awareness level, which is found missing in many organizational operations. The parameters of the model: manpower, machines, infrastructural facilities and raw materials were used together with information and machine technology available during the process of determining the expected output that will meet forecasted demand. The model developed was tested with data from two production companies. It was discovered that at low technology and information levels the outputs were low. Demand could not be satisfied. This results in importation to satisfy demand which has a negative effect on the economy. At high technology and information levels, demand is met with leftovers which results in some inventory cost. An optimal point was obtained in which output equals demand for a particular level of technology and information. The optimality points were further analyzed using SPSS 15.0, from which a linear multiple regression model relating output and demand to information and technology acquisition probabilities and the year under schedule was developed. This gave a concise model that was used to develop a computer programme in Visual Basic 6.0 software that predicted for the organizations the optimal production strategy. The model was tested and found to be very reliable for any organization that aim at getting the best output from the available resources.