ISSN:
1573-9724
Source:
Springer Online Journal Archives 1860-2000
Topics:
Mechanical Engineering, Materials Science, Production Engineering, Mining and Metallurgy, Traffic Engineering, Precision Mechanics
Notes:
Abstract Make-to-order manufacturers are facing unprecedented challenges to fill their customer orders quickly and to reduce their operating costs. In this paper, we first describe and discuss order taking and lead time quoting practice in a real world make-to-order manufacturing system. We then develop a model for this practical problem to study the conflicting objectives of delivering customized orders quickly and maximizing expected profit. The primary goal of this paper is to develop a general model for studying the trade-offs and the interrelationships among the following manufacturing performance measures: manufacturing flow times, quoted lead time reliability (earliness and tardiness), throughput (or demand) rates, inventory levels, resource utilization, and expected profits. These and other related managerial issues are explored. Our structural results yield insights into basic choices between filling customer orders quickly and maximizing expected profit.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1023/A:1007568619312
Permalink