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

This book presents models for the simultaneous optimization problem of capacity investment and work release rule parameterization, examines make-to-order production systems with serial processing stages, and introduces an endogenous production lead time.

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.

Identifies inventory reduction potentials for MTO production systems Develops equations and model frameworks as well as explicitly solved optimization problems that can easily be adopted by researchers Explains how the understanding of the influence of customer required lead time supports capacity and inventory decisions

Autorentext
Klaus Altendorfer is Professor for Production and Operations Management at the University of Applied Sciences Upper Austria. He received a PhD in Logistics and Operations Management from the University of Vienna, Austria. Stochastic modelling of production systems, production economics and simulation for production planning improvement are his research topics.

Inhalt
Introduction.- Literature Review.- Single-Stage Service Level and Tardiness Model.- Simultaneous Capacity and Planned Lead Time Optimization.- Optimal Composition of Number and Size of Machines.- Service Level Constraint Models.- Conclusion.