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Production planning and scheduling for companies with divergent processes, where a single component can be transformed into several finished products, are challenging as planners might face material misallocation issues. In this paper, we address the problem of managing a divergent process with DDMRP stock buffers, where different finished products are bottled with the same component having a fixed batch size. An allocation decision needs to be made to determine the quantities of finished products to be bottled. This study is motivated by a real-life problem faced by a dermo-cosmetic company. We compare and analyze by simulation nine different policies triggering allocation decisions. The first policy is the classic DDMRP rule, while the others are new policies, including a virtual buffer of a generic finished product and ConWIP loops, delaying the allocation decision. Our results show that the policy combining the classic DDMRP rule and a ConWIP loop surrounding a part of the process reduces the work-in-process by 34% compared to the classic DDMRP while ensuring high customer service rates and control of flow times.

Comparison of pull management policies for a divergent process with DDMRP buffers: an industrial case study