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Application of fixed order period lot sizing rule in capacitated make-to-order production systems


Citation

Tang, Sai Hong and Vasili, Mehdi and Vasili, Mohammadreza and Ismail, Napsiah (2013) Application of fixed order period lot sizing rule in capacitated make-to-order production systems. International Journal of Innovation, Management and Technology, 4 (1). pp. 1-5. ISSN 2010-0248

Abstract

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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Additional Metadata

Item Type: Article
Divisions: Faculty of Engineering
Publisher: International Association of Computer Science and Information Technology
Keywords: Capacity order characteristic; Fixed order period (FOP); Make-to-order (MTO); Work-ahead-window
Depositing User: Nabilah Mustapa
Date Deposited: 13 Mar 2015 01:08
Last Modified: 25 Jun 2018 08:21
URI: http://psasir.upm.edu.my/id/eprint/28859
Statistic Details: View Download Statistic

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