Capacity and Inventory Planning for Make-to-Order Production Systems

The Impact of a Customer Required Lead Time Distribution

Business & Finance, Management & Leadership, Operations Research, Production & Operations Management
Cover of the book Capacity and Inventory Planning for Make-to-Order Production Systems by Klaus Altendorfer, Springer International Publishing
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Author: Klaus Altendorfer ISBN: 9783319008431
Publisher: Springer International Publishing Publication: July 31, 2013
Imprint: Springer Language: English
Author: Klaus Altendorfer
ISBN: 9783319008431
Publisher: Springer International Publishing
Publication: July 31, 2013
Imprint: Springer
Language: English

​The book presents different models for the simultaneous optimization problem of capacity investment and work release rule parameterization. The overall costs are minimized either including backorder costs or considering a service level constraint. The available literature is extended with the integration of a distributed customer required lead time in addition to the actual demand distribution. Furthermore, an endogenous production lead time is introduced. Different models for make-to-order production systems with one or multiple serial processing stages are developed. Capacity investment is linked to the processing rates of the machines or to the number of the machines. Results are equations for service level, tardiness, and FGI lead time in such a production system. For special cases with M/M/1 and M/M/s queues explicit solutions of the optimization problems or optimality conditions concerning capacity investment and work release rule parameterization are provided.

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​The book presents different models for the simultaneous optimization problem of capacity investment and work release rule parameterization. The overall costs are minimized either including backorder costs or considering a service level constraint. The available literature is extended with the integration of a distributed customer required lead time in addition to the actual demand distribution. Furthermore, an endogenous production lead time is introduced. Different models for make-to-order production systems with one or multiple serial processing stages are developed. Capacity investment is linked to the processing rates of the machines or to the number of the machines. Results are equations for service level, tardiness, and FGI lead time in such a production system. For special cases with M/M/1 and M/M/s queues explicit solutions of the optimization problems or optimality conditions concerning capacity investment and work release rule parameterization are provided.

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