Controlling the order pool in make-to-order production systems

PhD ceremony: Mr. R. Germs, 14.30 uur, Aula Academiegebouw, Broerstraat 5, Groningen

Dissertation: Controlling the order pool in make-to-order production systems

Promotor(s): prof. J. Stomp

Copromotor(s): dr. Jan Riezebos, dr. Nicky van Foreest

Faculty: Economics and Business

The thesis of Remco Germs analyses and develops order acceptance and order release policies to control queues in make-to-order (MTO) production systems. Controlling the time orders spend waiting in queues is crucial for realizing short and reliable delivery times, two performance measures which are of strategic importance for many MTO com-panies. Order acceptance and order release are the two most important production con-trol mechanisms to influence the length of these queues. Their performance depends on typical characteristics of MTO systems, such as random (batch) order arrival, routing variability, fixed capacities, setup times and (strict) due-dates.

To better understand the underlying mechanisms of good order acceptance and order release policies the models in this thesis focus on the main characteristics of MTO systems. The insights obtained from these models are then used to develop order acceptance and order release policies that are easy to understand and thereby easy to implement in practice. The results show that these relatively simple policies may already lead to significant performance improvements for MTO companies.