 Priority allocation decisions in large scale MTO/MTS multi-product manufacturing systems: Technical reportChristian Van Deft (), Yann Dallery and Khaled Hadj Youssef () No 905, HEC Research Papers Series from HEC Paris Abstract: In this paper, the authors consider a single stage multi-product manufacturing facility producing a large number of end-products for delivery within a service constraint for the customer lead-time. The manufacturing facility is modeled as a multi-product, multi-priority queuing system. In order to reduce inventory costs, an e±cient priority allocation between items consists in producing some items according to a Make-To-Stock (MTS) policy and others according to a Make-To-Order (MTO)policy epending on their features (costs, required lead-time, demand rates). The authors propose a general optimization procedure that gives a near-optimal °ow control (MTO or MTS) to associate with each product and the corresponding near-optimal priority strategy. We illustrate e±ciency of our procedure via several examples and by a numerical analysis. In addition, we show numerically that a small number of priority classes is su±cient to obtain near-optimal performances. Keywords: Make-to-Stock (MTS); Make-to-Order (MTO); Priority allocation; Scheduling rule; Heterogeneous multi-product queuing system (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ebg:heccah:0905 Access Statistics for this paper More papers in HEC Research Papers Series from HEC Paris HEC Paris, 78351 Jouy-en-Josas cedex, France. Contact information at EDIRC. |
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