Priority allocation decisions in large scale MTO/MTS multi-product manufacturing systems : Technical report
AbstractIn this paper, the authors consider a single stage multi-product manufacturing facility producing a large number of end-products for delivery within a service constraint for the customer lead-time. The manufacturing facility is modeled as a multi-product, multi-priority queuing system. In order to reduce inventory costs, an e±cient priority allocation between items consists in producing some items according to a Make-To-Stock (MTS) policy and others according to a Make-To-Order (MTO)policy epending on their features (costs, required lead-time, demand rates). The authors propose a general optimization procedure that gives a near-optimal °ow control (MTO or MTS) to associate with each product and the corresponding near-optimal priority strategy. We illustrate e±ciency of our procedure via several examples and by a numerical analysis. In addition, we show numerically that a small number of priority classes is su±cient to obtain near-optimal performances.
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Bibliographic InfoPaper provided by HEC Paris in its series Les Cahiers de Recherche with number 905.
Length: 33 pages
Date of creation: 18 Oct 2008
Date of revision:
Make-to-Stock (MTS); Make-to-Order (MTO); Priority allocation; Scheduling rule; Heterogeneous multi-product queuing system;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-01-03 (All new papers)
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