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Priority allocation decisions in large scale MTO/MTS - Multi-product manufacturing systems: technical report

Author

Listed:
  • Christian van Delft

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • Yves Dallery

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

  • K. Hadj Youssef

    (laboratoire génie mécanique - ENIM - École Nationale d’Ingénieurs de Monastir - UM - Université de Monastir - University of Monastir)

Abstract

We consider a single stage multi-product manufacturing facility producing a large number of end-products for delivery within a service constraint for the customer lead-time. The manufac- turing facility is modeled as a multi-product, multi-priority queuing system. In order to reduce inventory costs, an e±cient priority allocation between items consists in producing some items according to a Make-To-Stock (MTS) policy and others according to a Make-To-Order (MTO) policy depending on their features (costs, required lead-time, demand rates). We propose a general optimization procedure that gives a near-optimal °ow control (MTO or MTS) to as- sociate with each product and the corresponding near-optimal priority strategy. We illustrate e±ciency of our procedure via several examples and by a numerical analysis. In addition, we show numerically that a small number of priority classes is su±cient to obtain near-optimal performances.

Suggested Citation

  • Christian van Delft & Yves Dallery & K. Hadj Youssef, 2008. "Priority allocation decisions in large scale MTO/MTS - Multi-product manufacturing systems: technical report," Working Papers hal-00578367, HAL.
    • Handle: RePEc:hal:wpaper:hal-00578367
    as

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