Determining the Make-to-Stock Production Batch Sizes When Adding a Make-to-Order Item -Model and Analysis

• Main Authors: Mao-Lin Yu, 游茂林
• Other Authors: 作者未提供
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/vbk4mu

碩士 === 銘傳大學 === 管理研究所 === 95 === Make-to-stock (MTS) production focuses on building enough inventory to meet customer demands, while make-to-order (MTO) production emphasizes on timely delivery within a required time window. Mixing the two makes production planning difficult due to the random order arrivals of the MTO items, which take away part of the production capacity for the MTS items. The production batch sizes of the MTS products have to increase such that setup can be reduced to preserve the remaining capacity. This study uses queueing theory to develop an optimization model that determines the MTS batch sizes such that the inventory costs of the MTS items are minimized while the lead time of the MTO product is met. We assume a single stage production as an M/G/1 queue and develop the waiting time in the system used as a constraint. The model is nonlinear and is solved by Excel. This study further shows the impacts of the MTO product’s order arrival patterns and other related parameters on the MTS items’ batch sizes. Some managerial insights are provided.