IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v263y2023ics0925527323001093.html
   My bibliography  Save this article

Switching decisions in a hybrid MTS/MTO production system comprising multiple machines considering setup

Author

Listed:
  • Sato, Yutaro
  • Maeda, Hiroyuki
  • Toshima, Ryusei
  • Nagasawa, Keisuke
  • Morikawa, Katsumi
  • Takahashi, Katsuhiko

Abstract

A hybrid make-to-stock (MTS) and make-to-order (MTO) production system was developed and analyzed in this study using a Markov decision process (MDP) model. Previous research successfully modeled cases with and without consideration of setup to obtain optimal solutions for such systems; however, the analyzed models were limited to a single machine. Therefore, this study formulated a hybrid MTS/MTO production system comprising multiple machines using a discrete-time MDP without prioritizing either MTS or MTO. All machines were considered hybrid machines that could be switched between MTS and MTO production by incurring a setup period. The MDP model was formulated using the state space, action space of the switching decision, transition probability, and cost function. The objective was to minimize the average cost per period, which comprised the MTS inventory holding costs, MTO job backlog costs, setup costs, and lost sales costs. A series of numerical investigations was undertaken to examine the number of machines that should be switched simultaneously within a given period and evaluate the dedication of different numbers of machines to a particular process, which are unique conditions to the assumption of multiple machines. The results indicated that switching only one machine at a time in a given period was sufficient and that the average cost remained unchanged even when machines were partially dedicated to MTS and/or MTO production. Thus, the proposed switching decisions were shown to realize the efficient control of hybrid MTS/MTO production systems.

Suggested Citation

  • Sato, Yutaro & Maeda, Hiroyuki & Toshima, Ryusei & Nagasawa, Keisuke & Morikawa, Katsumi & Takahashi, Katsuhiko, 2023. "Switching decisions in a hybrid MTS/MTO production system comprising multiple machines considering setup," International Journal of Production Economics, Elsevier, vol. 263(C).
    • Handle: RePEc:eee:proeco:v:263:y:2023:i:c:s0925527323001093
    DOI: 10.1016/j.ijpe.2023.108877
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527323001093
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2023.108877?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Awi Federgruen & Ziv Katalan, 1999. "The Impact of Adding a Make-to-Order Item to a Make-to-Stock Production System," Management Science, INFORMS, vol. 45(7), pages 980-994, July.
    2. Soman, Chetan Anil & Pieter van Donk, Dirk & Gaalman, Gerard, 2006. "Comparison of dynamic scheduling policies for hybrid make-to-order and make-to-stock production systems with stochastic demand," International Journal of Production Economics, Elsevier, vol. 104(2), pages 441-453, December.
    3. Khaled Hadj Youssef & Christian Van Delft & Yves Dallery, 2004. "Efficient Scheduling Rules in a Combined Make-to-Stock and Make-to-Order Manufacturing System," Annals of Operations Research, Springer, vol. 126(1), pages 103-134, February.
    4. Christian van Delft & K. Hadj Youssef y & Yves Dallery, 2009. "Analysis and Optimization of a Combined Make-to-Stock and Make-to-Order Multiproduct Manufacturing System," Post-Print hal-00491695, HAL.
    5. Fernandes, Nuno O. & Silva, Cristóvão & Carmo-Silva, S., 2015. "Order release in the hybrid MTO–FTO production," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 513-520.
    6. Federica Costa & Kaustav Kundu & Matteo Rossini & Alberto Portioli-Staudacher, 2023. "Comparative study of bottleneck-based release models and load-based ones in a hybrid MTO-MTS flow shop: an assessment by simulation," Operations Management Research, Springer, vol. 16(1), pages 33-48, March.
    7. Christian van Delft & K. Hadj Youssef, 2004. "Efficient Scheduling Rules in a Combined Make-to-Stock and Make-to-Order Manufacturing System," Post-Print hal-00471415, HAL.
    8. Beemsterboer, Bart & Land, Martin & Teunter, Ruud, 2017. "Flexible lot sizing in hybrid make-to-order/make-to-stock production planning," European Journal of Operational Research, Elsevier, vol. 260(3), pages 1014-1023.
    9. S. Rajagopalan, 2002. "Make to Order or Make to Stock: Model and Application," Management Science, INFORMS, vol. 48(2), pages 241-256, February.
    10. Charles R. Sox & L. Joseph Thomas & John O. McClain, 1997. "Coordinating Production and Inventory to Improve Service," Management Science, INFORMS, vol. 43(9), pages 1189-1197, September.
    11. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2022. "Merging make-to-stock/make-to-order decisions into sales and operations planning: A multi-objective approach," Omega, Elsevier, vol. 107(C).
    12. Beemsterboer, Bart & Land, Martin & Teunter, Ruud, 2016. "Hybrid MTO-MTS production planning: An explorative study," European Journal of Operational Research, Elsevier, vol. 248(2), pages 453-461.
    13. Wu, Muh-Cherng & Jiang, Jr-Hsiung & Chang, Wen-Jen, 2008. "Scheduling a hybrid MTO/MTS semiconductor fab with machine-dedication features," International Journal of Production Economics, Elsevier, vol. 112(1), pages 416-426, March.
    14. Soman, Chetan Anil & van Donk, Dirk Pieter & Gaalman, Gerard, 2004. "Combined make-to-order and make-to-stock in a food production system," International Journal of Production Economics, Elsevier, vol. 90(2), pages 223-235, July.
    15. Viên Nguyen, 1998. "A Multiclass Hybrid Production Center in Heavy Traffic," Operations Research, INFORMS, vol. 46(3-supplem), pages 13-25, June.
    16. Zhang, Zhe George & Kim, Ilhyung & Springer, Mark & Cai, Gangshu (George) & Yu, Yugang, 2013. "Dynamic pooling of make-to-stock and make-to-order operations," International Journal of Production Economics, Elsevier, vol. 144(1), pages 44-56.
    17. Scott Carr & Izak Duenyas, 2000. "Optimal Admission Control and Sequencing in a Make-to-Stock/Make-to-Order Production System," Operations Research, INFORMS, vol. 48(5), pages 709-720, October.
    18. Beemsterboer, Bart & Land, Martin & Teunter, Ruud & Bokhorst, Jos, 2017. "Integrating make-to-order and make-to-stock in job shop control," International Journal of Production Economics, Elsevier, vol. 185(C), pages 1-10.
    19. Morikawa, Katsumi & Takahashi, Katsuhiko & Hirotani, Daisuke, 2014. "Make-to-stock policies for a multistage serial system under a make-to-order production environment," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 30-37.
    20. Chang, Sheng-Hung & Pai, Ping-Feng & Yuan, Kuo-Jung & Wang, Bo-Chang & Li, Rong-Kwei, 2003. "Heuristic PAC model for hybrid MTO and MTS production environment," International Journal of Production Economics, Elsevier, vol. 85(3), pages 347-358, September.
    21. Diwakar Gupta & Lei Wang, 2007. "Capacity Management for Contract Manufacturing," Operations Research, INFORMS, vol. 55(2), pages 367-377, April.
    22. Kay Peeters & Henny van Ooijen, 2020. "Hybrid make-to-stock and make-to-order systems: a taxonomic review," International Journal of Production Research, Taylor & Francis Journals, vol. 58(15), pages 4659-4688, July.
    23. Williams, T. M., 1984. "Special products and uncertainty in production/inventory systems," European Journal of Operational Research, Elsevier, vol. 15(1), pages 46-54, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ghasemi, Elaheh & Lehoux, Nadia & Rönnqvist, Mikael, 2024. "A multi-level production-inventory-distribution system under mixed make to stock, make to order, and vendor managed inventory strategies: An application in the pulp and paper industry," International Journal of Production Economics, Elsevier, vol. 271(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Beemsterboer, Bart & Land, Martin & Teunter, Ruud, 2016. "Hybrid MTO-MTS production planning: An explorative study," European Journal of Operational Research, Elsevier, vol. 248(2), pages 453-461.
    2. Beemsterboer, Bart & Land, Martin & Teunter, Ruud & Bokhorst, Jos, 2017. "Integrating make-to-order and make-to-stock in job shop control," International Journal of Production Economics, Elsevier, vol. 185(C), pages 1-10.
    3. Beemsterboer, Bart & Land, Martin & Teunter, Ruud, 2017. "Flexible lot sizing in hybrid make-to-order/make-to-stock production planning," European Journal of Operational Research, Elsevier, vol. 260(3), pages 1014-1023.
    4. Beemsterboer, Bart & Land, Martin & Teunter, Ruud & Bokhorst, Jos, 2017. "Reprint of “Integrating make-to-order and make-to-stock in job shop control”," International Journal of Production Economics, Elsevier, vol. 194(C), pages 3-12.
    5. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2022. "Merging make-to-stock/make-to-order decisions into sales and operations planning: A multi-objective approach," Omega, Elsevier, vol. 107(C).
    6. Zhang, Zhe George & Kim, Ilhyung & Springer, Mark & Cai, Gangshu (George) & Yu, Yugang, 2013. "Dynamic pooling of make-to-stock and make-to-order operations," International Journal of Production Economics, Elsevier, vol. 144(1), pages 44-56.
    7. Shouyao Xiong & Yuanyuan Feng & Kai Huang, 2020. "Optimal MTS and MTO Hybrid Production System for a Single Product Under the Cap-And-Trade Environment," Sustainability, MDPI, vol. 12(6), pages 1-16, March.
    8. Dieter Fiems & Eline De Cuypere & Koen De Turck & Dieter Claeys, 2020. "Performance Analysis of Hybrid MTS/MTO Systems with Stochastic Demand and Production," Mathematics, MDPI, vol. 8(11), pages 1-16, November.
    9. Soman, Chetan Anil & Donk, Dirk Pieter van & Gaalman, Gerard, 2002. "Combined make-to-order and make-to-stock in a food production system," Research Report 02A49, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    10. Fernandes, Nuno O. & Silva, Cristóvão & Carmo-Silva, S., 2015. "Order release in the hybrid MTO–FTO production," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 513-520.
    11. Luo, Hao & Yang, Xuan & Kong, Xiang T.R., 2019. "A synchronized production-warehouse management solution for reengineering the online-offline integrated order fulfillment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 211-230.
    12. Agra, Agostinho & Poss, Michael & Santos, Micael, 2018. "Optimizing make-to-stock policies through a robust lot-sizing model," International Journal of Production Economics, Elsevier, vol. 200(C), pages 302-310.
    13. Sun, X.Y. & Ji, P. & Sun, L.Y. & Wang, Y.L., 2008. "Positioning multiple decoupling points in a supply network," International Journal of Production Economics, Elsevier, vol. 113(2), pages 943-956, June.
    14. Calle, Marcos & González-R, Pedro L. & Leon, Jose M. & Pierreval, Henri & Canca, David, 2016. "Integrated management of inventory and production systems based on floating decoupling point and real-time information: A simulation based analysis," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 48-57.
    15. Martínez-Olvera, César, 2009. "Benefits of using hybrid business models within a supply chain," International Journal of Production Economics, Elsevier, vol. 120(2), pages 501-511, August.
    16. Soman, Chetan Anil & Pieter van Donk, Dirk & Gaalman, Gerard, 2006. "Comparison of dynamic scheduling policies for hybrid make-to-order and make-to-stock production systems with stochastic demand," International Journal of Production Economics, Elsevier, vol. 104(2), pages 441-453, December.
    17. repec:dgr:rugsom:02a49 is not listed on IDEAS
    18. Ghasemi, Elaheh & Lehoux, Nadia & Rönnqvist, Mikael, 2024. "A multi-level production-inventory-distribution system under mixed make to stock, make to order, and vendor managed inventory strategies: An application in the pulp and paper industry," International Journal of Production Economics, Elsevier, vol. 271(C).
    19. Akkerman, Renzo & van Donk, Dirk Pieter, 2007. "Product prioritization in a two-stage food production system with intermediate storage," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 43-53, July.
    20. Sharda, Bikram & Akiya, Naoko, 2012. "Selecting make-to-stock and postponement policies for different products in a chemical plant: A case study using discrete event simulation," International Journal of Production Economics, Elsevier, vol. 136(1), pages 161-171.
    21. S. Rajagopalan, 2002. "Make to Order or Make to Stock: Model and Application," Management Science, INFORMS, vol. 48(2), pages 241-256, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:263:y:2023:i:c:s0925527323001093. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.