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A Comparative Analysis of Master Production Scheduling Techniques for Assemble‐To‐Order Products
Author(s) -
Tallon William J.
Publication year - 1989
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1989.tb01563.x
Subject(s) - tardiness , computer science , build to order , scheduling (production processes) , modular design , operations research , due date , operations management , inventory cost , order (exchange) , production (economics) , reliability engineering , job shop scheduling , business , mathematics , supply chain , economics , engineering , marketing , microeconomics , schedule , finance , operating system
This paper studies the master production scheduling (MPS) activity of manufacturing firms that produce assemble‐to‐order (ATO) products. It describes four techniques for master scheduling ATO products: end‐product bills, modular bills, super bills, and percentage bills. These procedures are compared in terms of the percentage of customer orders delivered late, the mean tardiness of customer order deliveries, and the total cost of inventory using simulation analysis. The results indicate that the performance of an MPS technique is affected by the level of uncertainty of the end products' demands and the degree of component commonality in the product structure. In particular, modular bills produce the highest customer service level and super bills produce the lowest total inventory cost under most operating conditions. The conclusions also suggest that the choice of a particular MPS technique is often a compromise between the benefits of improved MPS performance and the costs of implementing and executing the MPS system.