Sohn Galactic industries (SGI) is a small company that specializes in subcontracting small electronics components manufacturing. Customer companies provide SGI with components assembly specifications and equipment, and SGI provides labor and space for assembly operations. The labor pool is largely low-skilled, so the assembly operations must be simple and easy to teach. The company receives demand forecasts for each week's production some three months in advance. Once all components for a particular order are available, the order is scheduled for production, and the scheduler divides the order into equal-sized batches called kits. The schedule for the next week is planned on the Friday before and includes orders due in the next week and any backorders. The primary objective is a feasible schedule that meets due dates. The customer's changing forecast is a common occurrence, and SGI must handle these changes effectively. If there is a significant increase in demand, components can be shipped overnight to facilitate assembly. The scheduling system must be able to react quickly to changes in the forecast. The production of each kit follows a serial routing with between five and ten operations, and different employees can work sequentially on the kit. Each operation must be performed on a specific machine type and a specific set of skills are needed. Operation times are known and generally take about one hour per kit. Machines and employees can work on only one kit at a time, and there is no pre-emption of operations. Each kit need not be completed by the end of the day, and work can continue to the next day. Sohn Galactic industries (SGI) has a typical process layout where machines of similar type are located together, and each machine and employee must be scheduled over the day. Material handling is done manually, and the entire kit fits into a small plastic container. Upon completion of a kit, there is a 100% inspection of the parts, and parts may be sent for rework. The current database system is obsolete and requires input from a single person trained in operation. Sohn Galactic industries (SGI) has enlisted a team to help improve its production planning system by 1. Develop a system model for managing inventory and production. Design and implement a scheduling system that provides a weekly schedule for each machine and each employee. Design and implement an incentive system for rewarding employees for obtaining higher skills and for completing more parts.

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