Development of an Optimal Decision Policy for MTS-MTO System
نویسندگان
چکیده
POMS 22 nd Annual Conference Reno, Nevada, U.S.A. April 29 to May 2, 2011 Abstract: MTS-MTO system is suitable where standard modules are shared by various finished products through divergent finalization. The system can satisfy product variety by taking advantage of flexibility of MTO, but its performance is lowered when the capacity is constrained. One way of dealing with the problem without adversely affecting system service level is to limit the acceptance of customer orders. A model is developed using Markov Decision Process where semi-finished module inventory position and WIP in MTO stage are reviewed periodically. The optimal decision policy with regards to order acceptance is then found using dynamic programming. Based on the policy, a relationship between inventory policy, WIP, and the order acceptance decisions is then shown. This study takes MTS-MTO system research to a new stage by incorporating operational decisions, and explores optimal inventory policy in MTS-MTO system.
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