Manufacturing delivery performance for supply chain management

Authors:
Joongkyu Choi;Sherman X. Bai;Joseph Geunes;H. Edwin Romeijn
Affiliations:
The Sequoya Group, Inc., 100 N. Washington Blvd, Sarasota, FL 34685, USA;Department of Industrial and Systems Engineering, 303 Weil Hall, University of Florida, Gainesville, FL 32611, USA;Department of Industrial and Systems Engineering, 303 Weil Hall, University of Florida, Gainesville, FL 32611, USA;Department of Industrial and Systems Engineering, 303 Weil Hall, University of Florida, Gainesville, FL 32611, USA
Venue:
Mathematical and Computer Modelling: An International Journal
Year:
2007

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Abstract

This paper considers single-stage make-to-order production systems. We focus on (1) modeling the appropriate expected costs under a variety of modeling assumptions and (2) characterizing the optimal policies. Our approach to solving the problem is to derive the distribution of actual completion times of the process for individual orders and to compare it to the corresponding quoted due dates in order to obtain the expected total costs. We then show the convexity of the objective cost function for determining the decision variable(s), the planned customer order leadtime.