Article ID: | iaor20071220 |
Country: | Netherlands |
Volume: | 45 |
Issue: | 1/2 |
Start Page Number: | 11 |
End Page Number: | 20 |
Publication Date: | Jan 2007 |
Journal: | Mathematical and Computer Modelling |
Authors: | Romeijn H. Edwin, Bai Sherman X., Geunes Joseph, Choi Joongkyu |
Keywords: | production |
This paper considers single-stage make-to-order production systems. We focus on (1) modeling the appropriate expected costs under a variety of modeling assumptions and (2) characterizing the optimal policies. Our approach to solving the problem is to derive the distribution of actual completion times of the process for individual orders and to compare it to the corresponding quoted due dates in order to obtain the expected total costs. We then show the convexity of the objective cost function for determining the decision variable(s), the planned customer order leadtime.