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Combining make to order and make to stock

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Abstract

In inventory control and production planning one is tempted to use one of two strategies: produce all demand to stock or produce all demand to order. The disadvantages are well-known. In the ‘make everything to order’ case (MTO) the response times may become quite long if the load is high, in the ‘make everything to stock’ case (MTS) one gets an enormous inventory if the number of different products is large.

In this paper we study two simple models which combine MTO and MTS, and investigate the effect of combining MTO and MTS on the production lead times.

Zusammenfassung

In Lagerhaltung und Produktionsplanung werden überwiegend zwei alternative Strategien betrachtet: Produktion auf Bestellung oder auf Vorrat. Die Nachteile sind bekannt. Die erste Strategie kann zu sehr langen Durchlaufzeiten führen, die zweite zu hohen Beständen, insbesondere bei großer Produktanzahl. In dieser Arbeit werden zwei Modelle betrachtet, in denen die beiden Betrachtungsweisen kombiniert werden.

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Adan, I.J.B.F., van der Wal, J. Combining make to order and make to stock. OR Spektrum 20, 73–81 (1998). https://doi.org/10.1007/BF01539854

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  • DOI: https://doi.org/10.1007/BF01539854

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