An MADM Framework toward Hierarchical Production Planning in Hybrid MTS/MTO Environments
This paper proposes a new decision making structure
to determine the appropriate product delivery strategy for different products in a manufacturing system among make-to-stock, make-toorder,
and hybrid strategy. Given product delivery strategies for all products in the manufacturing system, the position of the Order
Penetrating Point (OPP) can be located regarding the delivery strategies among which location of OPP in hybrid strategy is a
cumbersome task. In this regard, we employ analytic network process, because there are varieties of interrelated driving factors
involved in choosing the right location. Moreover, the proposed structure is augmented with fuzzy sets theory in order to cope with
the uncertainty of judgments. Finally, applicability of the proposed structure is proven in practice through a real industrial case company.
The numerical results demonstrate the efficiency of the proposed decision making structure in order partitioning and OPP location.
[1] Y. Mu, Design of hybrid Make-to-Stock (MTS) - Make-to-Order (MTO)
manufacturing system. M.Sc. Thesis, The University of Minnesota, 2001.
[2] M. Ebadian, M. Rabbani, F. Jolai, S. A. Torabi, and R. Tavakkoli-Moghaddam, "A new decision-making structure for the order entry stage
in make-to-order environments," Int. J. Prod. Econ., vol. 111, no. 8, pp.
351-367, 2008.
[3] J. Olhager, "Strategic positioning of order penetration point," Int. J.
Prod. Econ., Vol. 85, pp. 319-329, 2003.
[4] C. A. Soman, D. P. van Donk, and G. Gaalman, "Combined make-toorder
and make-to-stock in food production system," Int. J. Prod. Econ., Vol. 90, no. 2, pp. 223-235, 2004.
[5] T. L. Saaty, Decision making with dependence and feedbacks: The analytic network process, RWS Publications, 1996.
[6] L. A. Zadeh, "Fuzzy sets," Inf. Control., Vol. 8, pp. 338-353, 1965.
[7] M. K. Omar and S. C. Teo, "Hierarchical production planning and scheduling in a multi-product batch process environment," Int. J. Prod.
Res., 2006.
[8] D. Corti, A. Pozzetti, and M. Zorzini, "A capacity-driven approach to establish reliable due dates in a MTO environment," Int. J. Prod. Econ., vol. 104, pp. 536-554, 2006.
[9] S. H. Chang, P. F. Pai, K. J. Yuan, B. C. Wang, and R. K. Li, "Heuristic
PAC model for hybrid MTO and MTS production environment," Int. J.
Prod. Econ., Vol. 85, pp. 347-358, 2003.
[10] S. Rajagopalan, "Make-to-order or make-to-stock: Model and
application," Manag. Sci., vol. 48, no. 2, pp. 241-256, 2002.
[11] N. Zaerpour, M. Rabbani, A. H. Gharehgozli, and R. Tavakkoli- Moghaddam, "Make to order or make to stock decision by a novel
hybrid approach," Adv. Eng. Inform., vol. 22, no. 2, pp. 186-201, 2008.
[12] D. P. van Donk, "Make to stock or make to order: the decoupling point
in the food processing industries," Int. J. Prod. Econ., vol. 96, no. 3, pp. 297-306, 2001.
[13] J. Winker, and M. Rudberg, "Integrating production and engineering
perspective on the customer order decoupling point," Int. J. Oper. Prod. Manag., Vol. 25, no. 7, pp. 623-641, 2005.
[14] U. Wemmerlov, and N. L. Hyer, "Procedures for the part family/machine group identification problem in cellular manufacturing," J.
Oper. Res., vol. 6, pp. 125-147, 1986.
[15] A. Kusiak, "The generalized group technology concept," Int. J. Prod.
Res., Vol. 25, pp. 561-569, 1987.
[16] K. R. Kumar, A. Kosiak, and A. Vamelli, "Grouping of parts and
components in flexible manufacturing systems," Euro. J. Oper. Res. 24,
pp. 387-397, 1986.
[17] V. Venugopal, and T. T. Narendran, "Machine-cell formation through
neural network models," Int. J. Prod. Res., vol. 32, pp. 2105-2116,
1994.
[18] R. Galan, J. Racero, and J.M. Eguia, "A systematic approach for product
families- formation in reconfigurable manufacturing systems," Robot.
Comput.-Integr. Manuf., vol. 23, no. 7, pp. 489-502, 2007.
[19] S. Hoekstra, and J. Romme, Integrated Logistics Structures: Developing
Customer Oriented Goods Flow, McGraw-Hill, London, UK, 1992.
[20] T. L. Saaty, The analytic hierarchical process, McGraw-Hill, New York,
1980.
[21] A. K. Taslicali, and S. Ercan, "The analytic hierarchy and the analytic
network processes in multicriteria decision making: A comparative
study," J. Aeronaut. Space. Technol., vol. 2, no. 4, pp. 55-65, 2006.
[22] A. Chu, R. Kalaba, and K. Springarn, "A comparison of two methods for
determining the weights of belonging to fuzzy sets," J. Opt. Theory
Appl. Vol. 27, pp. 531-541, 1979.
[23] Mikhailov, L., Singh, M.G.: Comparison analysis of methods for driving
priorities in the analytic hierarchy process. IEEE Trans. Syst. Man.
Cybern. IEEE SMC- 99, vol. 1, pp. 1037-1042, 1999.
[1] Y. Mu, Design of hybrid Make-to-Stock (MTS) - Make-to-Order (MTO)
manufacturing system. M.Sc. Thesis, The University of Minnesota, 2001.
[2] M. Ebadian, M. Rabbani, F. Jolai, S. A. Torabi, and R. Tavakkoli-Moghaddam, "A new decision-making structure for the order entry stage
in make-to-order environments," Int. J. Prod. Econ., vol. 111, no. 8, pp.
351-367, 2008.
[3] J. Olhager, "Strategic positioning of order penetration point," Int. J.
Prod. Econ., Vol. 85, pp. 319-329, 2003.
[4] C. A. Soman, D. P. van Donk, and G. Gaalman, "Combined make-toorder
and make-to-stock in food production system," Int. J. Prod. Econ., Vol. 90, no. 2, pp. 223-235, 2004.
[5] T. L. Saaty, Decision making with dependence and feedbacks: The analytic network process, RWS Publications, 1996.
[6] L. A. Zadeh, "Fuzzy sets," Inf. Control., Vol. 8, pp. 338-353, 1965.
[7] M. K. Omar and S. C. Teo, "Hierarchical production planning and scheduling in a multi-product batch process environment," Int. J. Prod.
Res., 2006.
[8] D. Corti, A. Pozzetti, and M. Zorzini, "A capacity-driven approach to establish reliable due dates in a MTO environment," Int. J. Prod. Econ., vol. 104, pp. 536-554, 2006.
[9] S. H. Chang, P. F. Pai, K. J. Yuan, B. C. Wang, and R. K. Li, "Heuristic
PAC model for hybrid MTO and MTS production environment," Int. J.
Prod. Econ., Vol. 85, pp. 347-358, 2003.
[10] S. Rajagopalan, "Make-to-order or make-to-stock: Model and
application," Manag. Sci., vol. 48, no. 2, pp. 241-256, 2002.
[11] N. Zaerpour, M. Rabbani, A. H. Gharehgozli, and R. Tavakkoli- Moghaddam, "Make to order or make to stock decision by a novel
hybrid approach," Adv. Eng. Inform., vol. 22, no. 2, pp. 186-201, 2008.
[12] D. P. van Donk, "Make to stock or make to order: the decoupling point
in the food processing industries," Int. J. Prod. Econ., vol. 96, no. 3, pp. 297-306, 2001.
[13] J. Winker, and M. Rudberg, "Integrating production and engineering
perspective on the customer order decoupling point," Int. J. Oper. Prod. Manag., Vol. 25, no. 7, pp. 623-641, 2005.
[14] U. Wemmerlov, and N. L. Hyer, "Procedures for the part family/machine group identification problem in cellular manufacturing," J.
Oper. Res., vol. 6, pp. 125-147, 1986.
[15] A. Kusiak, "The generalized group technology concept," Int. J. Prod.
Res., Vol. 25, pp. 561-569, 1987.
[16] K. R. Kumar, A. Kosiak, and A. Vamelli, "Grouping of parts and
components in flexible manufacturing systems," Euro. J. Oper. Res. 24,
pp. 387-397, 1986.
[17] V. Venugopal, and T. T. Narendran, "Machine-cell formation through
neural network models," Int. J. Prod. Res., vol. 32, pp. 2105-2116,
1994.
[18] R. Galan, J. Racero, and J.M. Eguia, "A systematic approach for product
families- formation in reconfigurable manufacturing systems," Robot.
Comput.-Integr. Manuf., vol. 23, no. 7, pp. 489-502, 2007.
[19] S. Hoekstra, and J. Romme, Integrated Logistics Structures: Developing
Customer Oriented Goods Flow, McGraw-Hill, London, UK, 1992.
[20] T. L. Saaty, The analytic hierarchical process, McGraw-Hill, New York,
1980.
[21] A. K. Taslicali, and S. Ercan, "The analytic hierarchy and the analytic
network processes in multicriteria decision making: A comparative
study," J. Aeronaut. Space. Technol., vol. 2, no. 4, pp. 55-65, 2006.
[22] A. Chu, R. Kalaba, and K. Springarn, "A comparison of two methods for
determining the weights of belonging to fuzzy sets," J. Opt. Theory
Appl. Vol. 27, pp. 531-541, 1979.
[23] Mikhailov, L., Singh, M.G.: Comparison analysis of methods for driving
priorities in the analytic hierarchy process. IEEE Trans. Syst. Man.
Cybern. IEEE SMC- 99, vol. 1, pp. 1037-1042, 1999.
@article{"International Journal of Mechanical, Industrial and Aerospace Sciences:54532", author = "H. Rafiei and M. Rabbani", title = "An MADM Framework toward Hierarchical Production Planning in Hybrid MTS/MTO Environments", abstract = "This paper proposes a new decision making structure
to determine the appropriate product delivery strategy for different products in a manufacturing system among make-to-stock, make-toorder,
and hybrid strategy. Given product delivery strategies for all products in the manufacturing system, the position of the Order
Penetrating Point (OPP) can be located regarding the delivery strategies among which location of OPP in hybrid strategy is a
cumbersome task. In this regard, we employ analytic network process, because there are varieties of interrelated driving factors
involved in choosing the right location. Moreover, the proposed structure is augmented with fuzzy sets theory in order to cope with
the uncertainty of judgments. Finally, applicability of the proposed structure is proven in practice through a real industrial case company.
The numerical results demonstrate the efficiency of the proposed decision making structure in order partitioning and OPP location.", keywords = "Hybrid make-to-stock/make-to-order, Multi-attribute decision making, Order partitioning, Order penetration point.", volume = "3", number = "10", pages = "1229-5", }
