Production-inventory analysis of single-station parallel machine make-to-stock/make-to-order system with random demands and lead times

Abstract Hybrid Make-To-Stock (MTS)/ Make-To-Order (MTO) production systems have captivated the attention of academic and practical societies due to their high levels of flexibility and profits of stock-based systems. This paper addresses a single-station production system including two parallel machines with two production modes; one of machines is allowed to process MTO (specific) products, whilst both machines might process these products in the other mode. In the considered system, it is assumed that demands and lead times follow Poisson and exponential density functions, respectively. In this regard, a queueing model is developed upon which extensive numerical analyses are conducted with respect to the exclusive performance measures for MTS and MTO products. The defined measures comprise fill rate, average number of finished products, and average number of orders for MTS products, and average number of specific orders in the system, expected response time, and on-time delivery rate for MTO products. Additionally, sensitivity analyses are performed.

[1]  Abdur Rahim,et al.  Optimal production-inventory policy for make-to-order versus make-to-stock based on the M/Er/1 queuing model , 2007 .

[2]  D. P. Donk,et al.  Comparison of dynamic scheduling policies for hybrid make-to-order and make-to-stock production systems with stochastic demand , 2004 .

[3]  Albert Y. Ha.  Stock Rationing in an M/Ek/1 Make-to-Stock Queue , 2000 .

[4]  Masoud Rabbani,et al.  Novel bi-level hierarchical production planning in hybrid MTS/MTO production contexts , 2013 .

[5]  Kuo-Hwa Chang,et al.  Queueing analysis on a single-station make-to-stock/make-to-order inventory-production system , 2010 .

[6]  Önder Bulut,et al.  Production control and stock rationing for a make-to-stock system with parallel production channels , 2011 .

[7]  Michael K. Ng,et al.  Alternating splitting waveform relaxation method and its successive overrelaxation acceleration , 2005 .

[8]  Stefan Minner,et al.  Influence of order acceptance policies on optimal capacity investment with stochastic customer required lead times , 2015, Eur. J. Oper. Res..

[9]  Reza Tavakkoli-Moghaddam,et al.  A fuzzy-mixed-integer goal programming model for a parallel-machine scheduling problem with sequence-dependent setup times and release dates , 2007 .

[10]  Kuo-Hwa Chang,et al.  A single-station MTO/MTS production system for standard and custom products , 2009, 2009 IEEE/INFORMS International Conference on Service Operations, Logistics and Informatics.

[11]  T. C. Edwin Cheng,et al.  Production planning and pricing policy in a make-to-stock system with uncertain demand subject to machine breakdowns , 2014, Eur. J. Oper. Res..

[12]  V. Donk.  Make to stock or make to order: the decoupling point in the food processing industries , 2001 .

[13]  Yavuz Günalay.  Efficient management of production-inventory system in a multi-item manufacturing facility: MTS vs. MTO , 2011 .

[14]  Klaus Altendorfer,et al.  A comparison of make-to-stock and make-to-order in multi-product manufacturing systems with variable due dates , 2014 .

[15]  Elizabeth M. Jewkes,et al.  Performance analysis and optimization of hybrid manufacturing systems under a batch ordering policy , 2013 .

[16]  Masoud Rabbani,et al.  Order partitioning and Order Penetration Point location in hybrid Make-To-Stock/Make-To-Order production contexts , 2011, Comput. Ind. Eng..

[17]  Zhibin Jiang,et al.  Optimal production control of a service-oriented manufacturing system with customer balking behavior , 2014 .

[18]  Yorai Wardi,et al.  IPA Derivatives for Make-to-Stock Production-Inventory Systems With Backorders Under the (R,r) Policy , 2009 .

[19]  Maike Schwarz,et al.  Queueing systems with inventory management with random lead times and with backordering , 2006, Math. Methods Oper. Res..

[20]  Mark C. Springer,et al.  Dynamic pooling of make-to-stock and make-to-order operations , 2013 .

[21]  Klaus Altendorfer,et al.  An analytical model for service level and tardiness in a single machine MTO production system , 2011 .

[22]  Jean-Philippe Gayon,et al.  Stock rationing in an M/E r /1 multi-class make-to-stock queue with backorders , 2009 .

[23]  Joseph Geunes,et al.  Impact of introducing make-to-order options in a make-to-stock environment , 2006, Eur. J. Oper. Res..

[24]  Masoud Rabbani,et al.  A developed production control and scheduling model in the semiconductor manufacturing systems with hybrid make-to-stock/make-to-order products , 2009 .

[25]  Jan Olhager,et al.  Strategic positioning of the order penetration point , 2003 .

[26]  Ebrahim Teimoury,et al.  An integrated operations-marketing perspective for making decisions about order penetration point in multi-product supply chain: a queuing approach , 2013 .

[27]  Gregory A. DeCroix,et al.  Make-to-order versus make-to-stock in a production-inventory system with general production times , 1998 .

[28]  Ivo J. B. F. Adan,et al.  Combining make to order and make to stock , 1998 .