Analysing MTO/MTS manufacturing system with batch arrival Poisson process and Erlang processing time through queueing theory

Document Type : Research Paper

Authors

Department of Industrial Engineering, Faculty of Engineering, Alzahra University, Tehran, Iran.

Abstract

In this paper, a two-stage MTO/MTS manufacturing system is analysed through queuing theory. In the first stage, semi-finished items are manufactured and held in intermediate buffer which is controlled by base stock policy. In the second stage, semi-finished items are customized when customers’ orders arrive. Processing time are assumed to be exponentially distributed at the stage one and follows Erlang distribution at the stage two. Demand follows a batch arrival Poisson process. Stationary probabilities are calculated using analytic matrix approach to evaluate performance measures and total cost function. Optimal point of differentiation and semi-finished goods buffer size are determined to minimize total cost function. Results show that optimal point of differentiation is not sensitive to semi-finished goods buffer size and customers’ arrival rate but decreases as the probability of manufacturing unsuitable items and processing time at the first stage increases.

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References

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Journal of Industrial Engineering Research in Production Systems
Volume 4, Issue 7 - Serial Number 7
Spring and Summer 2016
September 2016
Pages 69-79

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