Priority Allocation Decisions in Large Scale MTO/MTS Multi-product Manufacturing Systems : Technical report | Dallery, Yves
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Working Paper

Priority Allocation Decisions in Large Scale MTO/MTS Multi-product Manufacturing Systems : Technical report

Dallery, Yves ; HADJ, YOUSSEF K. ; VAN, DELFT Ch.

GROUPE HEC 2008 - 33 P.

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 manufacturing facility is modeled as a multiproduct, multipriority 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 associate with each product and the corresponding near optimal priority strategy. We illustrate efficiency 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.

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