Optimal production operations sequencing

The goal of this research is to address the following issues: Under what circumstances should a company perform operations resequencing? Which design leads to the most desirable inventory cost and customer service trade-off? For make-to-stock production–inventory systems with no work-in-progress safety stocks, we establish the optimal production operations sequencing and determine easy-to-use criteria for resequencing when technologically possible. We show that in many cases, resequencing decisions can be made using a graphical decision tool, namely cost–time profiling. For more complex systems with work-in-progress safety stock inventories, we analyze how system attributes drive overall performance. Some specific resequencing opportunities are examined in terms of their effects on cost and on the levels of optimum safety stocks.