Multi-site production planning in hybrid make-to-stock/make-to-order production environment

Abstract

Today competitive environment has enforced practitioners and researchers to pay great attention to issues enhancing both production and marketing competitiveness. To do so, it has been obligatory for the firms to consider production side activities while customer requirements are on the other side of competition. In this regard, hybrid make-to-stock (MTS)/make-to-order (MTO) production systems have revealed outstanding results. This paper addresses multi-site production planning of a hybrid manufacturing firm for the first time in the hybrid systems' body of literature. In this regard, a network of suppliers, manufacturers and customers is considered for which a mixed-integer mathematical model is proposed. Objective function of the proposed mathematical model seeks to maximize profitability of the manufacturing firm. Because of computational complexity of the developed mathematical model, a genetic algorithm is developed upon which numerical experiments are reported in order to show validity and applicability of the proposed model.