Optimizing the workload of production units of a make-to-order manufacturing system

Murat Firat, Julie J.M. De Meyere, Tugce G. Martagan, Laura Genga

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

This paper proposes a production planning approach for a job shop type
manufacturing company in electronics sector that operates with make-to-order
(MTO) convention and has a high-mix production range. A novel Mixed Integer
Linear Programming (MILP) model is proposed that nds workload-dependant
planning horizon by making order acceptance decisions. Partial acceptance of
orders and delayed internal target deliveries contribute to the novelty of the
proposed model. We establish the complexity of the problem and solve reallife
problem instances of a medium-size manufacturing company in the south
of the Netherlands. Our computational results show that the proposed MILP
model can allocate desired workload to work centers by dynamically adjusting
the time horizon for production plans. Our approach can practically be used
within reasonable times for daily updates of internal production targets. We
perform a sensitivity analysis to show how the time horizon is determined with
varying system conditions. The obtained workload amounts satisfy minimum
requirements of production units, as this cannot be achieved by the current
practice.
Original languageEnglish
JournalComputers & Operations Research
Publication statusSubmitted - 22 Nov 2020

Keywords

  • Job shop production planning
  • Internal Production Targets
  • Order Management
  • Mixed Integer Linear Programming
  • Capacity Management

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