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Complexity and workload considerations in product mix decisions under the theory of constraints

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  • Davood Golmohammadi
  • S. Afshin Mansouri

Abstract

The literature on the product mix decision (or master production scheduling) under the Theory of Constraints (TOC), which was developed in the past two decades, has addressed this problem as a static operational decision. Consequently, the developed solution techniques do not consider the system's dynamism and the associated challenges arising from the complexity of operations during the implementation of master production schedules. This paper aims to address this gap by developing a new heuristic approach for master production scheduling under the TOC philosophy that considers the main operational factors that influence actual throughput after implementation of the detailed schedule. We examine the validity of the proposed heuristic by comparison to Integer Linear Programming and two heuristics in a wide range of scenarios using simulation modelling. Statistical analyses indicate that the new algorithm leads to significantly enhanced performance during implementation for problems with setup times. The findings show that the bottleneck identification approach in current methods in the TOC literature is not effective and accurate for complex operations in real‐world job shop systems. This study contributes to the literature on master production scheduling and product mix decisions by enhancing the likelihood of achieving anticipated throughput during the implementation of the detailed schedule. © 2015 Wiley Periodicals, Inc. Naval Research Logistics 62: 357–369, 2015

Suggested Citation

  • Davood Golmohammadi & S. Afshin Mansouri, 2015. "Complexity and workload considerations in product mix decisions under the theory of constraints," Naval Research Logistics (NRL), John Wiley & Sons, vol. 62(5), pages 357-369, August.
  • Handle: RePEc:wly:navres:v:62:y:2015:i:5:p:357-369
    DOI: 10.1002/nav.21632
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    References listed on IDEAS

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    1. Linhares, Alexandre, 2009. "Theory of constraints and the combinatorial complexity of the product-mix decision," International Journal of Production Economics, Elsevier, vol. 121(1), pages 121-129, September.
    2. Christos Koulamas & Shrikant. S. Panwalkar, 2013. "A note on combined job selection and sequencing problems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 60(6), pages 449-453, September.
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    4. Kangbok Lee & Lei Lei & Michael Pinedo, 2012. "Production scheduling with history‐dependent setup times," Naval Research Logistics (NRL), John Wiley & Sons, vol. 59(1), pages 58-68, February.
    5. Fredendall, Lawrence D. & Ojha, Divesh & Wayne Patterson, J., 2010. "Concerning the theory of workload control," European Journal of Operational Research, Elsevier, vol. 201(1), pages 99-111, February.
    6. Bhattacharya, Arijit & Vasant, Pandian, 2007. "Soft-sensing of level of satisfaction in TOC product-mix decision heuristic using robust fuzzy-LP," European Journal of Operational Research, Elsevier, vol. 177(1), pages 55-70, February.
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    Cited by:

    1. Mansouri, S. Afshin & Golmohammadi, Davood & Miller, Jason, 2019. "The moderating role of master production scheduling method on throughput in job shop systems," International Journal of Production Economics, Elsevier, vol. 216(C), pages 67-80.
    2. Pacheco, Diego Augusto de Jesus & Antunes Junior, José Antonio Valle & de Matos, Celso Augusto, 2021. "The constraints of theory: What is the impact of the Theory of Constraints on Operations Strategy?," International Journal of Production Economics, Elsevier, vol. 235(C).

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