The Capacity Aspect of Inventories

Bemelmans, Roland

doi:10.1007/978-3-642-51695-5

Cited by 10 publications

(6 citation statements)

References 22 publications

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“…A heuristic method was designed by Rajagopalan (2002) in which an integer programming formulation of hybird MTS/MTO problem with non-linear functions was solved. Bemelmans (1986) addressed a capacitated production planning model with multiple products. the object was minimizing stock out and inventory holding expenses.…”

Section: Literature Reviewmentioning

confidence: 99%

A graph-based decision support system for analyzing hybrid make-to-stock/make-to-order manufacturing environments

Jalali

Ghomi

Rabbani

2020

BJO&PM

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Goal: This paper aims to facilitate production-planning strategies for demand responsiveness. Our paper implements graph-rewriting systems towards supporting operative decision making in production environments. Design / Methodology / Approach: We design a decision support approach which is able to recognize and resolve conflicts amongst workstations in a hybrid production system. During the proposed stages of the presented approach, we rewrite the hybrid system by means of graph representation procedure, identify conflicts among the workstations by means of the developed graph coloring algorithm, and evaluate performance of the reorganized system by defining key performance indicators for the presented system. Results: We prove that the graphs' chromatic numbers in such systems are less than or equal to entire number of dummy nodes applied to the system by means of our proposed algorithm. Furthermore, the presented structure improves the performance of the system by analyzing production bottlenecks. Limitations of the investigations: we only considered the Key Performance Indicators according to products, workstations, and customers. However, the problem can be more generalized by adding some more elements. Practical implications: Our methodology enables managers to assess the performance of the reorganized system after applying the heuristic algorithm, by means of representing a performance evaluation procedure. Originality / Value: We focus on presenting a novel structure to help companies using hybrid make-to-stock (MTS)/make-to-order (MTO) production strategies to (1) identify conflicting workstations and the relations among them, (2) propose dialectical prioritization rules and techniques by means of graph-coloring concepts for resolving the conflicts, (3) reorganize the system, and evaluate performance.

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Section: Literature Reviewmentioning

confidence: 99%

A graph-based decision support system for analyzing hybrid make-to-stock/make-to-order manufacturing environments

Jalali

Ghomi

Rabbani

2020

BJO&PM

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“…Rajagopalan(2002)characterizedaheuristicproceduretosolveanon-linear,integer programmingformulationoftheproblemwhichspecifiedtheMTS/MTOpartitionandthebatch sizesfortheMTSitems. Bemelmans(1986)consideredadecompositionofitemsintoslowandfast moversanddeliberatedthesituationasacapacitatedsingle-machine,multi-productforproduction planningproblem.Theperformancecriterionwastominimizethesumofinventoryholdingcosts andstock-outcosts.Nevertheless,theideacouldbefurtherextendedbyconsideringextrainventories forMTSinordertohavethemoreavailablecapacityforMTO (Beemsterboeretal.,2017;Arima etal.,2017).Ontheotherhand, Li(1992) Asmentionedbefore,therearedifferentapproachesthatmaybeappliedtohybridMTS/MTO productionsystems.Oneishierarchicalproductionplanning(HPP)introducedbyHaxandMealin the1970s.Withthismethodology,decisionscouldbemadeatdiversedecision-makinglevelswith dissimilarcharacteristics (HaxandMeal,1975;Halawaetal.,2017;Jiaetal.,2017).Theapplication ofHPPinsuchenvironmentswasfirstsurveyedbySomanetal( 2004)whodefinedthreedecision levelsincludingstrategic,tactical,andoperationalones.Inthefirstlevel,theso-calledMTS/MTO, firstproductfamiliesareformed,andthenthemanufacturingsystemsandOPP-relatedlocationsare decided.Thesecondlevel,knownascapacitycoordination,assignscapacity,MTS,MTO,andhybrid orders.Here,ordersareeitheracceptedorrejectedonthebasisoftheirprofitabilities.Consequently, cost-effectiveMTOandhybridordersareacceptedandthenon-profitableonesarerejectedinorder nottostockupcapacity.Thethirdlevel(schedulingandcontrolling)consistsofdeterminingthe sequenceandin-depthproductionplanfortheshoptomeetduedatesandlotsizesobtainedatthe previouslevel.RafieiandRabbani(2012)addressedcapacitycoordinationforhybridmanufacturing systemsincludingthreetypesofproducts:pureMTS,pureMTO,andhybridMTS/MTO.Thislevelof HPPconsistsofsomesubstantialfactorssuchasorderacceptance/rejectionprogram,orderdue-date setting,lot-sizingofMTSproducts,andalsothedeterminationofprerequisitecapacityduringthe planninghorizonofthelevel.Theyrepresentedafive-stepmodelattemptingtodecideuponseveral 2013) addressedthesecondandthirdlevelsofanHPPapproachtohybridMTS/MTOproductionsystems, proposingastructureconsistingofbothmid-termandshort-termproductionplanninglevels.On theotherhand,researchersfocusedonnewmethodsofintegratingMTSitemsintojobshopcontrol (Rabbani&Dolatkhah,2017;Barbosa&Azevedo,2018;Wikneretal.,2017)whereassomeothers focusedonlotsizevariationstrategies (Beemsterboeretal.,2017;Rafieietal.,2017).…”

Section: Hybrid Mts/mto Literature Bodymentioning

confidence: 99%

Demand Forecasting in Hybrid MTS/MTO Production Systems

Jalali

Ghomi

2018

International Journal of Applied Industrial Engineering

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Thisarticledescribeshowsimplifyingproduction-planningapproachesfordemandresponsiveness hasbeenwellrecognizedasanoperativemeansofaccomplishingproductionefficiency.Tosupport aneffectivedecisionmakinginmanufacturingenvironments,thisstudywillfocusonadoptingtime seriesanalysisconcepts.Itwillattempttofocusonbringingforwardnovelstructuresforclassifications ofavailablesurveyingmaterials,whichhelpscompaniesusingtimeseriesanalysiswithinproduction strategiestomakealogicalpredictionofdemandsinhybridmanufacturingsystems.Inthisregard, theauthorswillpresenttwodifferentcategorizingstructuresasefficientwaysofhelpingpractitioners andacademicianstofindnewapproachesforapplyingnearpossiblefutureforecastsbymeansof timeseriesanalysismethods.

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“…There are only a handful of research papers that explicitly talk about the combined MTO-MTS situation. In this section, we review the work of Williams (1984), Bemelmans (1986), Li (1992), Carr et al, (1993), Federgruen & Katalan (1994, 1999, Adan & Van der Wal (1998), Arreola-Risa & DeCroix (1998), Nguyen (1998), Carr & Duenyas (2000) and Rajagopalan (2002), which yield important insights for the combined MTO-MTS situation. Table 1 provides an overview of the literature in terms of subjects addressed; demand, production & process structure considered; performance criteria used; and the solution approach.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The waiting time for the availability of the capacity for the individual products is estimated using approximation to M/G/m queue. Bemelmans (1986) considers fast-movers and slowmovers products (with batch-size equal to one) and present the situation as a capacitated single-machine, multi-product-planning problem. He describes a concept of capacity oriented inventory -uncertainty in the demand of a certain product can be covered by the inventory of another product, whose demand is larger or less uncertain.…”

Section: Literature Reviewmentioning

confidence: 99%

“…MTO production of some of the items means reduction in the inventory of these items but there may be an increase in the inventory of the MTS items to achieve the equivalent service levels. This can be explained with the help of results from Karmarkar et al, (1985) and Bemelmans (1986). No inventory for MTO items means an increase in the number of setups and hence the machine utilization.…”

Section: Production and Inventory Policy Decisionsmentioning

confidence: 99%

See 1 more Smart Citation

Combined make-to-order and make-to-stock in a food production system

Soman

Donk

Gaalman

2004

International Journal of Production Economics

205

125

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The research into multi-product production/inventory control systems has mainly assumed one of the two strategies: Make-to-Order (MTO) or Make-to-Stock (MTS). In practice, however, many companies cater to an increasing variety of products with varying logistical demands (e.g. short due dates, specific products) and production characteristics (e.g. capacity usage, setup) to different market segments and so they are moving to more MTO-production. As a consequence they operate under a hybrid MTO-MTS strategy. Important issues arising out of such situations are, for example, which products should be manufactured to stock and which ones on order and, how to allocate capacity among various MTO-MTS products. This paper presents the state-of-the-art literature review of the combined MTO-MTS production situations. A variety of production management issues in the context of food processing companies, where combined MTO-MTS production is quite common, are discussed in details. The authors propose a comprehensive hierarchical planning framework that covers the important production management decisions to serve as a starting point for evaluation and further research on the planning system for MTO-MTS situations.

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The Capacity Aspect of Inventories

Cited by 10 publications

References 22 publications

A graph-based decision support system for analyzing hybrid make-to-stock/make-to-order manufacturing environments

A graph-based decision support system for analyzing hybrid make-to-stock/make-to-order manufacturing environments

Demand Forecasting in Hybrid MTS/MTO Production Systems

Combined make-to-order and make-to-stock in a food production system

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