An economic approach to job shop performance analysis

This paper focuses on the development of an economic approach to selecting an optimal job shop operating policy. A framework to include all relevant costs is first presented. A method of setting cost-minimizing due dates, based on flowtime forecasts and job specific cost considerations, is then developed. By formulating total relevant costs in terms of utilization, the optimal utilization level for a given dispatch rule can be analytically determined. Total profits associated with different dispatch rules can then be compared. Results show that due-date dependent dispatch rules outperform due-date independent rules.