Priority allocation decisions in large scale MTO/MTS - Multi-product manufacturing systems: technical report

Christian van Delft (), Yves Dallery () and K. Hadj Youssef
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Christian van Delft: GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique
Yves Dallery: LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec
K. Hadj Youssef: laboratoire génie mécanique - ENIM - École Nationale d’Ingénieurs de Monastir - UM - Université de Monastir - University of Monastir

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Abstract: We 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 manufac- turing 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 depending on their features (costs, required lead-time, demand rates). We propose a general optimization procedure that gives a near-optimal °ow control (MTO or MTS) to as- sociate 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.; Heterogeneous multi-product queuing system (search for similar items in EconPapers)
Date: 2008-10-17
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Published in 2008

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Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-00578367

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