Integrating make-to-order and make-to-stock in job shop control

Bart Beemsterboer, Martin Land, Ruud Teunter and Jos Bokhorst

International Journal of Production Economics, 2017, vol. 185, issue C, 1-10

Abstract: Demand fluctuations in make-to-order job shops lead to utilisation fluctuations and delivery delays, particularly in periods with high demand. Many job shop production companies therefore include some standardised products in their product mix and use a hybrid make-to-order/ make-to-stock production approach. However, as the control of a make-to-order job shop is usually focused on meeting due dates, which do not apply to make-to-stock items, integrating make-to-stock items in the control of a job shop is not straightforward. We propose four methods of integrating make-to-stock items in the control of a job shop and evaluate these using discrete event simulation in Python. We show that a popular but simple method of always giving priority to MTO items is strongly outperformed by more advanced methods of integrating MTS into job shop control as we have been able to reduce the MTS lost sales by a considerable 60%. We further show that considering up-to-date status information may improve the performance substantially. Loosening the due dates of MTS replenishment orders during periods of low MTS demand enables better use of the production capacity to maximise the delivery performance of MTO instead.

Keywords: Production; Hybrid production; Job shop; Job shop control; Discrete event simulation (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527316303942
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:185:y:2017:i:c:p:1-10

DOI: 10.1016/j.ijpe.2016.12.015

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().