A Dynamic Switching Policy with Combined Make-to-Stock/Make-to-Order Thresholds for Hybrid Production Systems

DOI: 10.5176/2251-1938_ORS16.16

Authors: Shohei Kanda, Katsuhiko Takahashi, Katsumi Morikawa, and Keisuke Nagasawa

Abstract:

Dynamic MTS/MTO hybrid production systems [1]; which some of machines, called hybrid machines can be switched between MTS and MTO productions flexibly depending on the situation, are superior for increasing utilization of machines, but they increase MTS inventory and MTO waiting customers. In this paper, to improve productivity, we propose a switching policy with combined make-to-stock (MTS) and make-to-order (MTO) thresholds in which both of MTS inventory level and MTO waiting customer level are utilized for switching decision. This system is analyzed by Markov analysis with the state transition diagram. Numerical experiments under several scenarios show the effectiveness of the proposed policy.

Keywords: hybrid system; threshold switching policy; make-to-stock; make-to-order; Markov analysis