Comparing integration strategies in production ordering systems

In this paper, the authors consider integrating push-type and pull-type production ordering systems and improving the performances of production ordering system for multi-stage production inventory systems. They deal with two strategies for the horizontal integration of push-type and pull-type production ordering systems. Mathematical models of the strategies are constructed, and the performances of the strategies are analyzed mathematically. The standardized variance of production quantity at each production process is considered as the performance criterion for production, and that of inventory level at each inventory point as the performance criterion for inventory. Additionally, in order to select an optimal strategy and to determine the optimal value of the integration parameter, the authors introduce a total criterion for production and that for inventory, and they analyze the trade-op relationship between the total criteria.