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This study puts forward a multi-attribute decision model that determines good production and inventory parameter settings in make-to-stock (MTS) environments controlled by the Conwip (constant work-in-process) method. This model uses a discrete event simulation to evaluate the performance of a system in relation to work-in-process and a finished goods inventory. Based on Multi-Attribute Value Theory (MAVT), a compromise solution is found by taking into account the decision-maker’s preferences and tradeoff judgments as to the attributes of cycle time, throughput rate, holding cost and stockout cost. A numerical application is given to illustrate the use of the proposed multi-attribute model which includes a sensitivity analysis.

DETERMINING PRODUCTION AND INVENTORY PARAMETERS: AN INTEGRATED SIMULATION AND MAVT APPROACH WITH TRADEOFF ELICITATION