Integrating material coordination and capacity load smoothing in multi-product multi-phase production systems

In all papers on capacity load smoothing today, the production situation is always studied in isolation, i.e. not considering it as part of a manufacturing chain. If we do not study it in isolation the materials aspect will play an important role. As well the availability of components for the next production phase as the availability of materials might influence the structure of the load-based work-order release rule used. In this research we have investigated this by not only retarding the release of work-orders but also advancing work orders, which in general is possible due to a surplus of material. We called this proactive load-based work-order release. Furthermore, we distinghuished two types of components, critical and non-critical components, leading to what we called selective load-based work-order release. The effects on the delivery performance and the inventory holding costs have been investigated by a simulation study. It turns out that proactive release is better than conventional load-based work-order release but still worse than immediate release. Selective load-based work-order release might lead to a positive effect on the inventory holding costs, however this depends on the ratio of the inventory holding costs for the critical and non-critical components.

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