An expert system (ES) is a problem-solving package that mimics a human expert in a specialized problem area. Several ESs have already been successfully implemented in production and operations management (P/OM), and many more are being developed. Though P/OM is a promising area for ESs, applications to date have been haphazard and independent research efforts to produce customized designs. ESs in P/OM can be classified using a two-dimensional framework that separates strategically and tactically oriented applications on one dimension, and operations and resources on the other. We group ESs according to this two-dimensional framework and also indicate the knowledge representation scheme, reasoning, and system building tool or programming language used.

A framework for classifying real-world applications of operations management is presented. Based on a survey of eight periodicals, the nature of and lacunae in field-based research are pointed out. The paper also discusses the politics of publishing and some measures for enhancing the number of articles related to actual applications.

Electric utilities are turning to the time‐of‐use rate structure as a solution to the pricing dilemma they face. Charging relatively higher prices for peak usage and lower prices for offpeak usage provides the correct pricing signal to the consumer and promotes a more efficient utilization of the utility. Though this rate form has been successfully used in Europe for over 25 years, there has not been much experience with it in this country. An important aspect of time‐of‐use rate design is the determination of peak and offpeak hours of the day. This paper uses cluster analysis to delineate the appropriate hours for rate design. Utilities build expensive base loads plants to provide large amounts of cheap energy and less capital intensive peaking plants with high operating costs to meet short term emergency requirements leading to higher average total costs as more power is generated. The procedure presented, therefore, groups loads into rating periods such that peak periods contain large loads and offpeak periods contain low loads. The methodology is applied to the determination of time‐of‐use rating period hours for a large electric utility in the U.S. Since the optimal grouping with four seasons and three time‐of‐use periods was judged to be not feasible, a “practical best” solution was developed by modifying it appropriately. The utility set the peak hours for winter months (October to April) as 6 a.m. to 12 noon and 4 p.m. to 10 p.m. and summer (May to September) peak hours as 10 a.m. to 10 p.m., with weekends and major holidays being considered offpeak. The time‐of‐use rate structure has been implemented for commercial and industrial consumers on an experimental basis. A consumer opting for the new structure will be monitored using both structures and billed for the lower amount.

The beedi is a small roll of finely cut tobacco, wrapped in kendu leaf and held together by a thread, smoked mostly by agricultural and industrial workers in south Asia. The beedi production process in India is very labor intensive. The industry is in effect a conglomerate of cottage industries. This study focuses on the aggregate production and inventory planning problem of a contractor whose existing inventory policy for leaves was not based on any systematic analysis. The suggested inventory model resulted in significant cost savings. His plan for increasing production is compared with other alternatives, and it is shown that marginal profit can be increased by adopting a different production plan.

An inventory management system and a materials information system were developed for an aircraft plant in India. They include an inventory classification scheme based on value and importance, and a vendor rating system. The new system resulted in a reduction of inventory by 10% and of overall delivery time by three months for the year.