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Order release planning with clearing functions: A queueing-theoretical analysis of the clearing function concept

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  • Missbauer, Hubert

Abstract

We consider the problem of planning future order releases in hierarchical production planning and control systems. An established research direction is the clearing function concept: the planned material flow through a production unit is modelled by inventory balance equations for WIP and final products, and the consequences of the stochastic properties of the material flow are modelled by clearing functions, which is the functional relationship between the level of WIP and the maximum output of a work centre in a period. Using a transient M/M/1 model, our paper shows that the usual definition of a nonlinear clearing function suffers from substantial shortcomings concerning both the definition of the function and empirical estimation of its parameters. We propose an alternative transient clearing function and derive a procedure for its parameterization.

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  • Missbauer, Hubert, 2011. "Order release planning with clearing functions: A queueing-theoretical analysis of the clearing function concept," International Journal of Production Economics, Elsevier, vol. 131(1), pages 399-406, May.
    • Handle: RePEc:eee:proeco:v:131:y:2011:i:1:p:399-406
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    1. Stevenson, Mark & Hendry, Linda C., 2006. "Aggregate load-oriented workload control: A review and a re-classification of a key approach," International Journal of Production Economics, Elsevier, vol. 104(2), pages 676-693, December.
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    5. Stefan Voß & David L. Woodruff, 2006. "Introduction to Computational Optimization Models for Production Planning in a Supply Chain," Springer Books, Springer, edition 0, number 978-3-540-29879-3, July.
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    1. Haeussler, S. & Stampfer, C. & Missbauer, H., 2020. "Comparison of two optimization based order release models with fixed and variable lead times," International Journal of Production Economics, Elsevier, vol. 227(C).
    2. Ghadimi, Foad & Aouam, Tarik & Haeussler, Stefan & Uzsoy, Reha, 2022. "Integrated and hierarchical systems for coordinating order acceptance and release planning," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1277-1289.
    3. A. Mustafin & A. Kantarbayeva, 2022. "Clearing function in the context of the invariant manifold method," Papers 2206.11205, arXiv.org.
    4. Aouam, Tarik & Brahimi, Nadjib, 2013. "Integrated production planning and order acceptance under uncertainty: A robust optimization approach," European Journal of Operational Research, Elsevier, vol. 228(3), pages 504-515.
    5. Pürgstaller, Peter & Missbauer, Hubert, 2012. "Rule-based vs. optimisation-based order release in workload control: A simulation study of a MTO manufacturer," International Journal of Production Economics, Elsevier, vol. 140(2), pages 670-680.
    6. Haeussler, Stefan & Missbauer, Hubert, 2014. "Empirical validation of meta-models of work centres in order release planning," International Journal of Production Economics, Elsevier, vol. 149(C), pages 102-116.
    7. Guhlich, Hendrik & Fleischmann, Moritz & Mönch, Lars & Stolletz, Raik, 2018. "A clearing function based bid-price approach to integrated order acceptance and release decisions," European Journal of Operational Research, Elsevier, vol. 268(1), pages 243-254.

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