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Public investment and intergenerational distribution under alternative modes of financing

  • Heijdra, Ben J.
  • Horst, Albert van der
  • Meijdam, Lex

    (Groningen University)

The research into multi-product production/inventory control systems has mainly assumed one of the two strategies: Make-to-Order (MTO) or Make-to-Stock (MTS). In practice, however, many companies cater to an increasing variety of products with varying logistical demands (e.g. short due dates, specific products) and production characteristics (e.g. capacity usage, setup) to different market segments and so they are moving to more MTO-production. As a consequence they operate under a hybrid MTO-MTS strategy. Important issues arising out of such situations are, for example, which products should be manufactured to stock and which ones on order and, how to allocate capacity among various MTO-MTS products. This paper presents the state-of-the-art literature review of the combined MTO-MTS production situations. A variety of production management issues in the context of food processing companies, where combined MTO-MTS production is quite common, are discussed in details. The authors propose a comprehensive hierarchical planning framework that covers the important production management decisions to serve as a starting point for evaluation and further research on the planning system for MTO-MTS situations.

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Paper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 02C51.

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Date of creation: 2002
Date of revision:
Handle: RePEc:dgr:rugsom:02c51
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