We consider the problem of allocating demand arising from multiple products to multiple production facilities with finite capacity and load-dependent lead-times. Production facilities can choose to manufacture items either to-stock or to-order. Products vary in their demand rates, holding and backordering costs, and service level requirements. We develop models and solution procedures to determ...

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...

Satisfying customer demand necessitates manufacturers understanding the importance of Available-To-Promise (ATP). It directly links available resources to customer orders and has significant impact on overall performance of a supply chain. In this paper, an improvement of the batch-mode ATP function in which the partial fulfillment of the orders is available will be proposed. In other words, in...

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 ...

A multi-item manufacturer served by a single supplier in a stochastic environment is considered. The manufacturer and the supplier have to decide which items to produce to stock and which to produce to order. The manufacturer also has to quote due dates to arriving customers for make-to-order products. The manufacturer is penalized for long lead times, missing the quoted lead times and high inv...