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Order release planning by iterative simulation and linear programming: Theoretical foundation and analysis of its shortcomings

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  • Missbauer, Hubert

Abstract

Planning future order releases for complex manufacturing systems with substantial lead times must consider limited capacities and the resulting production smoothing problem as well as the highly nonlinear relationship between capacity utilization, work-in-process and flow times. An important solution approach that has been proposed for this problem is to iterate between an order release model with fixed lead times and a lead time estimation (usually simulation) model that estimates the flow times for given order releases, providing the lead times for the next iteration. However, the convergence of this iterative procedure is highly unpredictable, limiting its practical use.

Suggested Citation

  • Missbauer, Hubert, 2020. "Order release planning by iterative simulation and linear programming: Theoretical foundation and analysis of its shortcomings," European Journal of Operational Research, Elsevier, vol. 280(2), pages 495-507.
    • Handle: RePEc:eee:ejores:v:280:y:2020:i:2:p:495-507
    DOI: 10.1016/j.ejor.2019.07.030
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    Citations

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    Cited by:

    1. Haeussler, S. & Stampfer, C. & Missbauer, H., 2020. "Comparison of two optimization based order release models with fixed and variable lead times," International Journal of Production Economics, Elsevier, vol. 227(C).
    2. Matthias Thürer & Nuno O. Fernandes & Mark Stevenson, 2020. "Material Flow Control in High‐Variety Make‐to‐Order Shops: Combining COBACABANA and POLCA," Production and Operations Management, Production and Operations Management Society, vol. 29(9), pages 2138-2152, September.
    3. Kasper, T.A. Arno & Land, Martin J. & Teunter, Ruud H., 2023. "Non-hierarchical work-in-progress control in manufacturing," International Journal of Production Economics, Elsevier, vol. 257(C).
    4. Manda, A.B. & Uzsoy, Reha, 2021. "Managing product transitions with learning and congestion effects," International Journal of Production Economics, Elsevier, vol. 239(C).
    5. Beraudy, Sébastien & Absi, Nabil & Dauzère-Pérès, Stéphane, 2022. "Timed route approaches for large multi-product multi-step capacitated production planning problems," European Journal of Operational Research, Elsevier, vol. 300(2), pages 602-614.
    6. Justyna Smagowicz & Cezary Szwed & Tomaž Berlec, 2024. "An Assortment–Quantity Optimization Problem in Printing Industry Using Simulation Modelling," Sustainability, MDPI, vol. 16(4), pages 1-25, February.
    7. Gopalswamy, Karthick & Uzsoy, Reha, 2021. "Conic programming models for production planning with clearing functions: Formulations and duality," European Journal of Operational Research, Elsevier, vol. 292(3), pages 953-966.
    8. Kaustav Kundu & Martin J. Land & Alberto Portioli-Staudacher & Jos A. C. Bokhorst, 2021. "Order review and release in make-to-order flow shops: analysis and design of new methods," Flexible Services and Manufacturing Journal, Springer, vol. 33(3), pages 750-782, September.

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