ABSTRACT BEHAVIOR OF AN ORDER RELEASE MECHANISM IN A MAKE-TO-ORDER MANUFACTURING SYSTEM WITH SELECTED ORDER ACCEPTANCE

Abstract

The value of holding orders in a pre-shop pool, prior to their release to the factory floor, is a somewhat controversial topic. This is especially true for make-to-order manufacturing systems, where, if capacity is fixed and exogenous due dates are inflexible, having orders wait in a preshop pool may cause the overall due date performance of the system to deteriorate. In such circumstances, selective rejection of orders offers an alternative approach to dealing with surges in demand whilst maintaining acceptable due date performance. This paper reports on the behavior of such a make-to-order manufacturing system under a control policy involving both an order release component and an order acceptance/rejection component.