Optimal selection of orders in a just-in-time manufacturing environment: a loading model for a computer integrated manufacturing system

Abstract. A model is presented to select from among a range of customer orders, those orders which will maximize the net operational profit during the planning time horizon. The proposed model is developed based on group technology (GT) and just-in-time (JIT) concepts. The proposed model can be used simultaneously as a loading model for optimal use of the processing capabilities of an integrated manufacturing system consisting of a set of non-identical GT cells. In this model, the planning time horizon is assumed to be short; the production quantity of each customer order for any part or product always equals its corresponding demand quantity (e.g., JIT philosophy); each part requires a finite number of aggregated stages of operation; job splitting is allowed; and the processing priorities of all the jobs during the planning time horizon are specified, based on a desirable dispatching rule. This mathematical programming model is a fixed charge problem which is solved by a compatible mixed integer programm...