Application of fixed order period lot sizing rule in capacitated make-to-order production systems
In this paper, the fixed order period (FOP) lot sizing rule is considered as an appropriate lot-sizing strategy; which, through establishing a work-ahead-window, is used for modeling make-to-order (MTO) production systems with limited available capacity. FOP in an MTO environment summarizes the know...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
International Association of Computer Science and Information Technology
2013
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| Online Access: | http://psasir.upm.edu.my/id/eprint/28859/ http://psasir.upm.edu.my/id/eprint/28859/1/Application%20of%20fixed%20order%20period%20lot%20sizing%20rule%20in%20capacitated%20make.pdf |
| Summary: | In this paper, the fixed order period (FOP) lot sizing rule is considered as an appropriate lot-sizing strategy; which, through establishing a work-ahead-window, is used for modeling make-to-order (MTO) production systems with limited available capacity. FOP in an MTO environment summarizes the known customers’ demands of the next work-ahead-window periods into one production lot. Establishing a work-ahead- window helps to smooth the production and buffer the production line from demand variability by pre-production of orders that are needed later. In other words, the orders that should be delivered in periods with higher required capacity than the available capacity are pre-produced in periods with lower required capacity. Generally, the fluctuation of the customer required capacity in an MTO environment is smoothed by applying an average operator in a way that the long term average customer required capacity is always less than the available capacity. |
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