An order penetration point (OPP) is the boundary between make-to-order (MTO) policy and make-to-stock (MTS) policy. This study is dedicated to OPP strategic decision making which is concerned with the upstream and downstream decisions of OPP in supply chains. In this paper, we consider a two-echelon production supply chain in which in first production stage, supplier manufactures the semi-finished products on a MTS policy for a manufacturer in second production stage that will customize the products on a MTO policy. The manufacturer desires to find the optimal fraction of processing time fulfilled by its supplier and its optimal semi-finished products buffer storage capacity in OPP. Also, impatient customers are considered in the study. In order to calculate system performance indexes, we employ matrix geometric method and queuing steady state equations. Afterward, optimal solutions are obtained applying an optimization mathematical model with enumeration and direct search techniques.

This paper develops a model for determining locations of capacitated facilities on a network when the model is multicommodity. It is formulated as bi-objective since the problem of locating facilities faces many conflicting criteria. The objectives which used are related to total cost and dispersion of located facilities. Since these models are categorized in NP hard model, a simulated annealing (SA) algorithm was applied to solve problem. Also for converting Bi-objective model to single objective a Global Criterion (GC) method was applied. At the end an example of model with numerical results are shown.