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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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)
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sandra Dupouy).
If references are entirely missing, you can add them using this form.