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

The Impact of a Customer Required Lead Time Distribution

  • Book
  • © 2014

Overview

Authors:
  1. Klaus Altendorfer

    1. School of Management Dept. of Operations Management, University of Applied Sciences Upper Austria, Steyr, Austria

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  • Identifies inventory reduction potentials for MTO production systems
  • Develops equations and model frameworks as well as explicitly solved optimization problems that can easily be adopted by researchers
  • Explains how the understanding of the influence of customer required lead time supports capacity and inventory decisions

Part of the book series: Lecture Notes in Economics and Mathematical Systems (LNE, volume 671)

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Table of contents (7 chapters)

  1. Front Matter

    Pages i-xv
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  2. Introduction

    • Klaus Altendorfer
    Pages 1-4

  3. Literature Review

    • Klaus Altendorfer
    Pages 5-17

  4. Single-Stage Service Level and Tardiness Model

    • Klaus Altendorfer
    Pages 19-42

  5. Simultaneous Capacity and Planned Lead Time Optimization

    • Klaus Altendorfer
    Pages 43-71

  6. Optimal Composition of Number and Size of Machines

    • Klaus Altendorfer
    Pages 73-98

  7. Service Level Constraint Models

    • Klaus Altendorfer
    Pages 99-124

  8. Conclusion

    • Klaus Altendorfer
    Pages 125-127

  9. Back Matter

    Pages 129-138
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Keywords

About this book

​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.

Reviews

From the reviews:

“This book comprises a collection of four research papers the author prepared during his time as a Ph.D. student at University of Vienna. … Using simple queueing models, this thesis aims at deriving analytical expressions for performance measures and insights derived from those. It will inspire future work on production control and manufacturing systems design with a particular emphasis on customer requirements. This book summarizes state-of-the-art insights to capacity and inventory planning and will be useful to students and practitioners.” (P. R. Parthasarathy, Mathematical Reviews, March, 2014)

Authors and Affiliations

  • School of Management Dept. of Operations Management, University of Applied Sciences Upper Austria, Steyr, Austria

    Klaus Altendorfer

About the author

Klaus Altendorfer is Professor for Production and Operations Management at the University of Applied Sciences Upper Austria. He received a PhD in Logistics and Operations Management from the University of Vienna, Austria. Stochastic modelling of production systems, production economics and simulation for production planning improvement are his research topics.

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