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Rule-based vs. optimisation-based order release in workload control: A simulation study of a MTO manufacturer

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  • Pürgstaller, Peter
  • Missbauer, Hubert

Abstract

The paper presents a simulation study that compares multi-period models for order release optimisation (Input/Output Control with fixed lead times and a clearing function model) with a traditional workload control-based order release mechanism (control of aggregate workload with periodic release). For the optimisation models the study assumes periodic re-planning and thus can also assess the effects of demand predictability. The simulation model is based on a practical case of a manufacturer of optical storage media. The results indicate that optimisation models for order release planning largely outperform traditional workload control-based order release mechanisms even in the case of poor demand forecasts.

Suggested Citation

  • Pürgstaller, Peter & Missbauer, Hubert, 2012. "Rule-based vs. optimisation-based order release in workload control: A simulation study of a MTO manufacturer," International Journal of Production Economics, Elsevier, vol. 140(2), pages 670-680.
    • Handle: RePEc:eee:proeco:v:140:y:2012:i:2:p:670-680
    DOI: 10.1016/j.ijpe.2011.09.012
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    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).
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    3. Haeussler, Stefan & Missbauer, Hubert, 2014. "Empirical validation of meta-models of work centres in order release planning," International Journal of Production Economics, Elsevier, vol. 149(C), pages 102-116.

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