A single-station MTO/MTS production system for standard and custom products

In this study, we consider a hybrid MTO/MTS production system with random demands. The system is a MTS system dealing with the ordinary demands and special demands at the same time. To evaluate the system, we consider the fill rate of the ordinary demands and the waiting time of the special demands. The system is analyzed by modeling them as inventory queueing system. The limiting probabilities are obtained by using matrix-geometric method and their corresponding performances under base-stock control policy can also be obtained. Furthermore, we can determine the optimal base-stock level numerically.