IDEAS home Printed from https://ideas.repec.org/a/spr/opsear/v53y2016i4d10.1007_s12597-016-0265-6.html
   My bibliography  Save this article

Multiple customer order decoupling points within a hybrid MTS/MTO manufacturing supply chain with uncertain demands in two consecutive echelons

Author

Listed:
  • Iman Ghalehkhondabi

    (Ohio University)

  • Dusan Sormaz

    (Ohio University)

  • Gary Weckman

    (Ohio University)

Abstract

For decades, manufacturers have dealt with uncertain demands, and many solutions—such as manufacturing semi-finished products–have been presented to help manage the uncertainties. This paper considers the demand uncertainties in two echelons of a supply chain, unlike most of the field research, which has focused on the final customers’ demand uncertainty. In order to decrease the operating costs of a manufacturer, a model is proposed to use hybrid manufacturing in two levels of a supply chain with two echelons of manufacturers. The output of the presented model is the quantity of semi-finished products ordered to the decoupling point upstream manufacturer. The number of processes that must be done based upon Make to Stock, the order quantity of the decoupling point downstream manufacturers, and the order quantity of the final customers are obtained by the presented model as well. A numerical example and a vast sensitivity analysis are presented to better show the applicability of the presented model.

Suggested Citation

  • Iman Ghalehkhondabi & Dusan Sormaz & Gary Weckman, 2016. "Multiple customer order decoupling points within a hybrid MTS/MTO manufacturing supply chain with uncertain demands in two consecutive echelons," OPSEARCH, Springer;Operational Research Society of India, vol. 53(4), pages 976-997, December.
    • Handle: RePEc:spr:opsear:v:53:y:2016:i:4:d:10.1007_s12597-016-0265-6
    DOI: 10.1007/s12597-016-0265-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12597-016-0265-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12597-016-0265-6?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. Soman, C.A. & van Donk, D.P. & Gaalman, G.J.C., 2007. "Capacitated planning and scheduling for combined make-to-order and make-to-stock production in the food industry: An illustrative case study," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 191-199, July.
    2. van Donk, Dirk Pieter, 2001. "Make to stock or make to order: The decoupling point in the food processing industries," International Journal of Production Economics, Elsevier, vol. 69(3), pages 297-306, February.
    3. Jeong, In-Jae, 2011. "A dynamic model for the optimization of decoupling point and production planning in a supply chain," International Journal of Production Economics, Elsevier, vol. 131(2), pages 561-567, June.
    4. 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.
    5. 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.
    6. Ben Naylor, J. & Naim, Mohamed M & Berry, Danny, 1999. "Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain," International Journal of Production Economics, Elsevier, vol. 62(1-2), pages 107-118, May.
    7. 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.
    8. Hau L. Lee & Christopher S. Tang, 1997. "Modelling the Costs and Benefits of Delayed Product Differentiation," Management Science, INFORMS, vol. 43(1), pages 40-53, January.
    9. Olhager, Jan, 2003. "Strategic positioning of the order penetration point," International Journal of Production Economics, Elsevier, vol. 85(3), pages 319-329, September.
    10. Mohmmad Hanafy & Hoda ElMaraghy, 2015. "Developing assembly line layout for delayed product differentiation using phylogenetic networks," International Journal of Production Research, Taylor & Francis Journals, vol. 53(9), pages 2633-2651, May.
    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. Zhiming Shi & Yisong Li & Gábor Bohács & Qiang Zhou, 2022. "A Study on Optimal Location Selection and Semi-Finished Product Inventory Allocation in the Steel Industry," Sustainability, MDPI, vol. 14(22), pages 1-21, November.
    2. F. Tanhaie & M. Rabbani & N. Manavizadeh, 2020. "Applying available-to-promise (ATP) concept in mixed-model assembly line sequencing problems in a Make-To-Order (MTO) environment: problem extension, model formulation and Lagrangian relaxation algori," OPSEARCH, Springer;Operational Research Society of India, vol. 57(2), pages 320-346, June.

    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. Wikner, Joakim & Naim, Mohamed M. & Spiegler, Virginia L.M. & Lin, Junyi, 2017. "IOBPCS based models and decoupling thinking," International Journal of Production Economics, Elsevier, vol. 194(C), pages 153-166.
    2. Zhiming Shi & Yisong Li & Gábor Bohács & Qiang Zhou, 2022. "A Study on Optimal Location Selection and Semi-Finished Product Inventory Allocation in the Steel Industry," Sustainability, MDPI, vol. 14(22), pages 1-21, November.
    3. 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.
    4. Cannas, Violetta G. & Gosling, Jonathan & Pero, Margherita & Rossi, Tommaso, 2020. "Determinants for order-fulfilment strategies in engineer-to-order companies: Insights from the machinery industry," International Journal of Production Economics, Elsevier, vol. 228(C).
    5. Jeong, In-Jae, 2011. "A dynamic model for the optimization of decoupling point and production planning in a supply chain," International Journal of Production Economics, Elsevier, vol. 131(2), pages 561-567, June.
    6. Hoogstra-Klein, Marjanke A. & Meijboom, Kars, 2021. "A qualitative exploration of the wood product supply chain – investigating the possibilities and desirability of an increased demand orientation," Forest Policy and Economics, Elsevier, vol. 133(C).
    7. 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.
    8. Helia Yousefnejad & Maryam Esmaeili, 2020. "Tactical production planning in a hybrid MTS/MTO system using Stackelberg game," Operational Research, Springer, vol. 20(3), pages 1791-1809, September.
    9. Liu, Weihua & Liang, Zhicheng & Ye, Zi & Liu, Liang, 2016. "The optimal decision of customer order decoupling point for order insertion scheduling in logistics service supply chain," International Journal of Production Economics, Elsevier, vol. 175(C), pages 50-60.
    10. Iman Ghalehkhondabi & Ehsan Ardjmand & Gary Weckman, 2017. "Integrated decision making model for pricing and locating the customer order decoupling point of a newsvendor supply chain," OPSEARCH, Springer;Operational Research Society of India, vol. 54(2), pages 417-439, June.
    11. Cannas, Violetta G. & Gosling, Jonathan & Pero, Margherita & Rossi, Tommaso, 2019. "Engineering and production decoupling configurations: An empirical study in the machinery industry," International Journal of Production Economics, Elsevier, vol. 216(C), pages 173-189.
    12. 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.
    13. Hassani Youssef & Ceauşu Ioana & Iordache Adrian, 2020. "Lean and Agile model implementation for managing the supply chain," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 14(1), pages 847-858, July.
    14. Dirk Briskorn & Philipp Zeise, 2019. "A cyclic production scheme for the synchronized and integrated two-level lot-sizing and scheduling problem with no-wait restrictions and stochastic demand," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 41(4), pages 895-942, December.
    15. Olhager, Jan & Prajogo, Daniel I., 2012. "The impact of manufacturing and supply chain improvement initiatives: A survey comparing make-to-order and make-to-stock firms," Omega, Elsevier, vol. 40(2), pages 159-165, April.
    16. Romsdal, Anita & Strandhagen, Jan Ola & Dreyer, Heidi Carin, 2014. "Can Differentiated Production Planning and Control enable both Responsiveness and Efficiency in Food Production?," 2014 International European Forum, February 17-21, 2014, Innsbruck-Igls, Austria 199374, International European Forum on System Dynamics and Innovation in Food Networks.
    17. Schoenwitz, Manuel & Potter, Andrew & Gosling, Jonathan & Naim, Mohamed, 2017. "Product, process and customer preference alignment in prefabricated house building," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 79-90.
    18. Saghiri, Soroosh S. & Barnes, Stuart J., 2016. "Supplier flexibility and postponement implementation: An empirical analysis," International Journal of Production Economics, Elsevier, vol. 173(C), pages 170-183.
    19. Kerkkanen, Annastiina, 2007. "Determining semi-finished products to be stocked when changing the MTS-MTO policy: Case of a steel mill," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 111-118, July.
    20. Mihiotis A., 2014. "Management of Supply Chain: X-to-order Concepts vs Make-to-stock Model," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 5(3), pages 30-33, May.

    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:spr:opsear:v:53:y:2016:i:4:d:10.1007_s12597-016-0265-6. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.