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

The Impact of a Customer Required Lead Time Distribution

  • Klaus Altendorfer

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

Table of contents

  1. Front Matter
    Pages i-xv
  2. Klaus Altendorfer
    Pages 1-4
  3. Klaus Altendorfer
    Pages 5-17
  4. Klaus Altendorfer
    Pages 19-42
  5. Klaus Altendorfer
    Pages 99-124
  6. Klaus Altendorfer
    Pages 125-127
  7. Back Matter
    Pages 129-138

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.


Inventory Make-to-Order Manufacturing Production Economics Production Systems Queuing Theory Stochastic Modelling

Authors and affiliations

  • Klaus Altendorfer
    • 1
  1. 1.School of Management Dept. of Operations ManagementUniversity of Applied Sciences Upper AustriaSteyrAustria

Bibliographic information

  • DOI
  • Copyright Information Springer International Publishing Switzerland 2014
  • Publisher Name Springer, Cham
  • eBook Packages Business and Economics
  • Print ISBN 978-3-319-00842-4
  • Online ISBN 978-3-319-00843-1
  • Series Print ISSN 0075-8442
  • Series Online ISSN 2196-9957
  • About this book