Rule-based vs. optimisation-based order release in workload control: A simulation study of a MTO manufacturer

The paper presents a simulation study that compares multi‐period models for order release optimisation (Input/Output Control with fixed lead times and a clearing function model) with a traditional workload control‐based order release mechanism (control of aggregate workload with periodic release). For the optimisation models the study assumes periodic re‐planning and thus can also assess the effects of demand predictability. The simulation model is based on a practical case of a manufacturer of optical storage media. The results indicate that optimisation models for order release planning largely outperform traditional workload control‐based order release mechanisms even in the case of poor demand forecasts.