Quoting manufacturing due dates subject to a service level constraint

Citation
Wj. Hopp et Mlr. Sturgis, Quoting manufacturing due dates subject to a service level constraint, IIE TRANS, 32(9), 2000, pp. 771-784
Citations number
22
Categorie Soggetti
Engineering Management /General
Journal title
IIE TRANSACTIONS
ISSN journal
0740817X → ACNP
Volume
32
Issue
9
Year of publication
2000
Pages
771 - 784
Database
ISI
SICI code
0740-817X(200009)32:9<771:QMDDST>2.0.ZU;2-V
Abstract
We develop a method for quoting manufacturing due dates to achieve a target service level (percent of orders filled on-time). We posit a very general function for determining leadtimes as a function of work in process and use a control chart method for adjusting the parameters in this function over time. We make almost no assumptions about the nature of the underlying prod uction system (i.e., we do not require any particular distribution of proce ss times, nor do we require that the system be in steady state). Using simu lation we show that our method is very accurate for a simple case where an exact analytic solution is possible and that it outperforms other due date quoting methods from the literature in more complex situations.