Customer-order-driven production: an economical concept for responding to demand uncertainty?

Article Abstract:

A study developed a hierarchical production planning concept consisting of long- and medium-term planning levels and a short-term planning level for gauging the production quantities of individual products. This approach ensures that a feasible solution can be developed for all possible demand realization for individual products in situations of uncertain demand and that consistent production quantities result in the short term. It was also demonstrated that customer-order-driven production ensures a consistent solution.

Models, Supply and demand, Factory orders, Demand (Economics)

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Production planning in the case of uncertain individual demand extension for an MRP II concept

Article Abstract:

Production planning during cases of uncertain demand can be performed using either forecast-driven production or customer-order-driven production. Forecast-driven production involves the use of MRP II or manufacturing resource planning where production quantities and resource requirements are based on forecasted demand while customer-order production involves the determination of production quantities when orders are received.

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Capacity planning and lead time management

Article Abstract:

A capacity planning and lead time management framework which takes into account work-load-dependent lead times is developed. Mean lead times are first determined using a rough queueing analysis and aggregate scheduling procedure. This data is then used to calculate work-load-dependent lead times. It is shown that the framework outperforms a procedure wherein lead times are determined based on the amount of work in a shop.

Methods, Lead time

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