Integrated Capacity Coordination-matching Process in Make-to-forecast Production Environments

Author(s)

Hamed Rafiei, Masoud Rabbani, Hanan Mostaghimi

Author affiliation

Hamed Rafiei, Masoud Rabbani, School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, P.O. Box: 11155-4563, Iran
Hanan Mostaghimi, Industrial and Manufacturing Systems Engineering, University of Winsor, Ontario, Canada

Abstract

Although Make-To-Forecast (MTF) production environment is one of production systems have been utilized in real industrial world, academicians have not paid considerable attention to this field of production planning. In this paper, a novel capacity coordination framework in MTF production environments is proposed. The proposed framework includes four steps. At the first step, production value is determined based on Analytic Hierarchy Process (AHP) method upon which estimated capacity is allocated to correction process in the second step. Next, product lot sizes are optimized in the third stage using a proposed mathematical programming model. The final step is related to order acceptance/rejection and matching process. In this regard, negotiability of receiving orders is considered in order to make proper acceptance/rejection decision. Also, an assignment model is developed for the matching process, which is tackled using the well-known Hungarian method. Finally, results of a real-world industrial case study are reported to show performance of the proposed framework.

Keywords

Capacity coordination; make-to-forecast; matching process; order acceptance/rejection; production plannin