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Business & Management - Production & Logistics | Capacity and Inventory Planning for Make-to-Order Production Systems - The Impact of a Customer

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

The Impact of a Customer Required Lead Time Distribution

Altendorfer, Klaus

2014, XV, 138 p. 30 illus.

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  • ​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
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.

Content Level » Research

Keywords » Inventory - Make-to-Order Manufacturing - Production Economics - Production Systems - Queuing Theory - Stochastic Modelling

Related subjects » Applications - Operations Research & Decision Theory - Organization - Human Resource Management - Production & Logistics

Table of contents 

​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.

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