Title :
MTS lead time uncertainty study in periodic review MTS-MTO system
Author :
Fengyu Wang ; Piplani, Rajesh ; Xia, Laura Xu Xiao ; Bhullar, Amrik Singh
Author_Institution :
Singapore Inst. of Manuf. Technol., Singapore, Singapore
Abstract :
Joint MTS-MTO system is well recognized because a) it supports postponement well in manufacturing, and b) it can lower the cost by taking advantage of economy of scale in MTS and satisfy high product variety by taking advantage of flexibility in MTO. However, there is a lack of decision support in parameter control for fully exploiting the potential benefits. In this paper we assess the impact of the uncertainty of MTS production lead time and provide the insight of the impact of MTS production lead time and its variation. The simulation results show that with current inventory policy structure the service-related costs, such as late delivery and order rejection cost are insensitive to MTS production lead time and its variation. However, the reduction of MTS production lead time can considerably reduce inventory holding cost. Further study is needed for validating the results after an “optimal” inventory policy is obtained.
Keywords :
cost reduction; economies of scale; inventory management; lead time reduction; manufacturing systems; MTS production lead time uncertainty; MTS production lead time variation; decision support; economy of scale; inventory holding cost reduction; inventory policy structure; late delivery; make-to-order systems; make-to-stock systems; order rejection cost; periodic review joint MTS-MTO system; product variety; service-related costs; Admission control; Analytical models; Approximation methods; IP networks; Joints; Production; Uncertainty; MTS-MTO system; Production lead time; Simulation;
Conference_Titel :
Industrial Engineering and Engineering Management (IEEM), 2012 IEEE International Conference on
Conference_Location :
Hong Kong
DOI :
10.1109/IEEM.2012.6837969
