An Optimal Decision Model of Production-Inventory with MTS and ATO Hybrid Model Considering Uncertain Demand

Zhang, Dezhi; Li, Xialian; Li, Xiamiao; Li, Shuangyan; Qian, Qi

doi:10.1155/2015/241536

Cited by 2 publications

(5 citation statements)

References 20 publications

(29 reference statements)

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“…Meanwhile, several studies did not discriminate products to be produced based on MTS or MTO strictly. Zhang et al proposed hybrid MTS/assemble-to-order (ATO) production system [10]. In the first, manufacturer produces certain quantity of components for assembling the final products and certain number of final products by using MTS model.…”

Section: Related Work 21 Hybrid Make-to-stock/make-to-order Policymentioning

confidence: 99%

“…So, the remaining time of this order is equal to zero too. Formalization of this modified SRT model is shown in Equation (10) q q q q q q q q , , , ,…”

Section: Proposed Modelmentioning

confidence: 99%

“…In the multi-product manufacturing system, many studies classified the products into two groups: MTO based products and MTS based products [8,9]. Meanwhile, other studies did not discriminate these products strictly [10,11]. Some studies used single-stage manufacturing system [7] while others used multi-stage one [10].…”

Section: Introductionmentioning

confidence: 99%

“…Meanwhile, other studies did not discriminate these products strictly [10,11]. Some studies used single-stage manufacturing system [7] while others used multi-stage one [10]. The hybrid MTS-MTO system can be run in dedicated production facility or shared production facility [12].…”

Section: Introductionmentioning

confidence: 99%

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Hybrid Make-to-Stock and Make-to-Order (MTS-MTO)Scheduling Model in Multi-Product Production System

Kusuma

2022

IJIE

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In production process, scheduling isan important role in meeting the orders and reducing the cost. This process becomes more complicated when the factory produces various products. Scheduling model in the production process can be divided into two groups: make-to-stock (MTS) and make-to-order (MTO). General constraint in the MTSmodel is limited production capacity and inventory cost. This work aims to propose hybrid MTS-MTO model that can improve lead time and maintain low inventory. In this work, we propose three hybrid MTS-MTO scheduling models for the multi-product production system. In these models, we modify several scheduling algorithms that are used in computer system, such as shortest remaining time(SRT), shortest processing time(SPT), and Round Robin(RR). These models are hybrid (s, S)-first-come-first served (FCFS)model, hybrid modified (s, Q)-SPT model, and modified (s, Q)-SRT model. This model then is implemented into production simulation. In this simulation process, we compare the proposed models with the existing item-by-item based (s, S)model. Based on the simulation result, these proposed models perform better than the basic MTS model. The hybrid (s, Q)-modified SPTmodel performs as the best model in creating high completion ratio, low lead time, and low inventory ratio. In certain condition, our proposed model performs 344 percent in completion ratio, 19.8 percent in lead time, and 3 percent in inventory ratio compared with the existing model.

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Section: Related Work 21 Hybrid Make-to-stock/make-to-order Policymentioning

confidence: 99%

“…So, the remaining time of this order is equal to zero too. Formalization of this modified SRT model is shown in Equation (10) q q q q q q q q , , , ,…”

Section: Proposed Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Hybrid Make-to-Stock and Make-to-Order (MTS-MTO)Scheduling Model in Multi-Product Production System

Kusuma

2022

IJIE

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“…Problemin bu tür varyantları ile ilgilenen okuyucular için Zhang vd. [20] ve Rafiei vd. 'nin [21] güncel çalışmalarını önermekteyiz.…”

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Hazırlık maliyetli stoğa-üretim sistemlerinin kontrolü

Özkan

Bulut

2020

Gazi Üniversitesi Mühendislik Mimarlık Fakültesi Dergisi

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 Control of Markovian make-to-stock systems  Analyses for optimal production and rationing policies  Proposing easy-to-apply new policies We study the joint production-inventory control problem in a Markovian make-to-stock production environment with fixed start-up cost, multiple identical production lines and several customer classes. The dynamic programming formulation of the problem is developed and it is shown with the numerical examples that the optimal production and stock rationing policies have dynamic structures. We also propose easy-toapply alternative policies. Left part of Figure A depicts a supply chain example that highlights the role and significance of the problem in practice. The production-inventory control problem can be experienced at almost all the echelons of typical supply chains. As seen from right part of Figure A, the proposed production policy (PP) is near optimal and its performance is robust with respect to the changes in the most important system parameters, which are the number of available lines and the fixed production cost. Figure A. Left part: A supply chain example; Right part: optimal production policy versus alternative policies: i. impact of number of available lines (at top right), ii. fixed production cost (at bottom right) Purpose: We study the production and inventory control of make-to-stock systems having multiple production lines, production start-up costs and different customer classes. The first aim of the study is to elaborate on the dynamic structure of the optimal production and stock allocation (rationing) policies. Second, we also aim to propose well-performing and easy-to-apply alternative policies. Theory and Methods: The dynamic programming formulation of the M/M/s make-to-stock queue model is developed and the optimal production and rationing policies are numerically studied via Value Iteration Algorithm (VIA). We also impose the structure of the proposed production and rationing policies to the VIA and reuse the algorithm to assess the performances of the proposed policies. Results: Numerical studies reveal that the optimal production and rationing policies are highly dynamic. On the other hand, it is also shown that the proposed easy-to-apply policies are near optimal. Conclusion: We study the joint production-inventory control problem in a make-to-stock production setting with fixed start-up cost, multiple lines and several customer classes. First, the dynamic programming formulation of the M/M/s make-to-stock queue model is developed and the structure of the optimal production and rationing policies are studied. Due to the dynamic nature of the optimal production policy, as a second contribution, we propose a well-performing and easy-to-apply alternative. In addition, a general rationing policy structure is also proposed. This structure has the flexibility to generate the well-known FCFS and static rationing policies as well as a new dynamic policy. We conduct an extensive numerical study and asses the value of rationing as a strategy and the additio...

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An Optimal Decision Model of Production-Inventory with MTS and ATO Hybrid Model Considering Uncertain Demand

Cited by 2 publications

References 20 publications

Hybrid Make-to-Stock and Make-to-Order (MTS-MTO)Scheduling Model in Multi-Product Production System

Hybrid Make-to-Stock and Make-to-Order (MTS-MTO)Scheduling Model in Multi-Product Production System

Hazırlık maliyetli stoğa-üretim sistemlerinin kontrolü

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