A Simulation-Optimization Model For Capacity Coordination In Make To Stock/Make To Order Production Environments

Abstract

Capacity coordination, as the tactical level of hierarchical production planning in hybrid MTS/MTO systems, includes numerous important decisions. In this paper, two of these decisions i.e. finding the best strategy for the acceptance/rejection of incoming orders and determining orders' due dates – are investigated. Also a simulation model is proposed to evaluate the efficiency of the presented mixed integer model. Finally, an industrial case study is considered in a food processing plant to evaluate the proposed framework and conduct suitable sensitivity analysis.