Capacity and Inventory Planning for Make-to-Order Production Systems

Download or read book Capacity and Inventory Planning for Make-to-Order Production Systems written by Klaus Altendorfer and published by Springer Science & Business Media. This book was released on 2013-07-31 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt: ​The book presents different models for the simultaneous optimization problem of capacity investment and work release rule parameterization. The overall costs are minimized either including backorder costs or considering a service level constraint. The available literature is extended with the integration of a distributed customer required lead time in addition to the actual demand distribution. Furthermore, an endogenous production lead time is introduced. Different models for make-to-order production systems with one or multiple serial processing stages are developed. Capacity investment is linked to the processing rates of the machines or to the number of the machines. Results are equations for service level, tardiness, and FGI lead time in such a production system. For special cases with M/M/1 and M/M/s queues explicit solutions of the optimization problems or optimality conditions concerning capacity investment and work release rule parameterization are provided.