Investigation of Effectiveness of Order Review and Release Models in Make to Order Supply Chain

Abstract

Abstract. Nowadays customisation becomes more common due to vast requirement from the customers for which industries are trying to use make-to-order (MTO) strategy. Due to high variation in the process, workload control models are extensively used for jobshop companies which usually adapt MTO strategy. Some authors tried to implement workload control models, order review and release systems, in non-repetitive manufacturing companies, where there is a dominant flow in production. Those models are better in shop floor but their performances are never been investigated in high variation situations like MTO supply chain. This paper starts with the introduction of particular issues in MTO companies and a general overview of order review and release systems widely used in the industries. Two order review and release systems, the Limited and Balanced models, particularly suitable for flow shop system are applied to MTO supply chain, where the processing times are difficult to estimate due to high variation. Simulation results show that the Balanced model performs much better than the Limited model if the processing times can be estimated preciously.

A new perspective on Workload Control by measuring operating performances through an economic valorization

“… Category Measures Sample references 1. Time-related Lead time 51 Shop floor throughput time 52 Supply chain time 53 2. Dependability Lateness 54 Percentage of tardy jobs 15 Service level 25 Tardiness 32 3.…”

“…Almost all the metrics reported in Table 1 are self-explaining; only some of them deserve some further comments. Supply chain time was introduced by 53 to measure lead time of a MTO supply chain of highly customizable goods. Also 58 , uses two interesting measures, namely the Strike rate , that is the proportion of successful quotations among total enquiries, and the Production yield , referred to as the successful rate of the production of a product, or the percentage of jobs that do not generate quality problems, such as reworks or scraps.…”

Workload Control and Order Dispatching Rules

“…Protecting manufacturing from variability is a key factor for most production systems (Kundu and Staudacher, 2016). The order release mechanism ensures that jobs start just in time to meet due dates without overwhelming the system's capability (Mezzogori et al, 2019).…”