Materials flow control in hybrid make-to-stock/make-to-order manufacturing

Abstract

Today’s company competiveness is favoured by product customisation and fast delivery. A strategy to meet this challenge is to manufacture standard items to stock for product customisation. This configures a hybrid environment of make-to-stock and make-to-order. To explore the advantages of this requires good understanding of production control. Thus, we study production under hybrid MTS-MTO, organising the system in two stages. The 1 st manufactures items to inventory, which are then customised in the 2 nd . We analyse how the percentage of tardy orders is affected by the inventory of items required to achieve a given fill rate. The impact of two mechanisms for releasing orders to both stages is also analysed. Results of a simulation study indicate that most of the reduction on the percentage of tardy orders is achieved by a moderate increase in the stock level of semi-finished products. Moreover the percentage of tardy orders decreases if suitable controlled release of orders is exerted.