Modelling customisation in production-inventory systems
2004 (English)In: Proceedings of the 2nd World POM Conference, 2004Conference paper (Other academic)
With the implementation of e-business, customisation is increasingly becoming a competitive strategy for manufacturing companies. From both theoretical and practical perspectives, however, there is limited knowledge about the influence of customisation on the operational level. In this paper, we model two different production systems: the single machine production system with a cyclical production policy and the serial production system with a decoupling point, where customisation is considered. These models provide a theoretical framework for designing a production-inventory system in practice. As for the solutions yielded by the models, the most interesting finding is that capacity requirement increases with customer order lead-time in the serial production system in one of the cases’ solutions, which is counterintuitive. This result is due to the complexity of the relationship between the variables of decoupling point position and capacity requirements and the parameter of customer order leadtime in the mathematical formulation.
Place, publisher, year, edition, pages
e-business, customisation, production-inventory system, capacity requirements, decoupling point, lead-time
IdentifiersURN: urn:nbn:se:liu:diva-23760Local ID: 3274OAI: oai:DiVA.org:liu-23760DiVA: diva2:244075
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico, April 30 - May 3, 2004