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Using order routing specific flow time and workload information to improve lead time and due date performance in job shops

Authors
Publisher
Technische Universiteit Eindhoven
Publication Date
Keywords
  • Long Term Planning
  • Management Science: Report Series
  • Operations Research - Production Planning
  • Scheduling

Abstract

BETA publicatie ISBN ISSN NUR Eindhoven Keywords BETA-Research Programme Te publiceren in: Using order routing specific flow time and workload information to improve lead time and due date performance in job shops J.W.M. Bertrand and H.P.G. van Ooijen WP93 WP 93 (working paper) 90-386-1588-4 1386-9213 804 Mei 2003 Chain Management USING ORDER ROUTING SPECIFIC FLOW TIME AND WORKLOAD INFORMATION TO IMPROVE LEAD TIME AND DITE DATE PERFORMANCE IN JOB SHOPS J.W.M. BERTRAND AND H.P.G. VAN OOIJEN Technische Universiteit Eindhoven Department of Technology Management March 2003 1 USING ORDER ROUTING SPECIFIC FLOW TIME AND WORKLOAD INFORMATION TO IMPROVE LEAD TIME AND DUE DATE PERFORMANCE IN JOB SHOPS Abstract Research on due date setting in job shop production systems has revealed a number of factors that, when taken into account in order due date setting, lead to better due date performance. These factors are the processing times of the order, the number of operations of the order, and the workload in the shop at the arrival time of the order. In this paper we investigate further refinements of the way in which these factors are taken into account when setting due dates. In particular we investigate the use of complete information about the order flow time probability density function and the workload on the routing ofan order. 1. Introduction In view of the management literature, which reports the strategic importance of short and reliable lead times (see e.g. Stalk and Rout [1990]), it is plausible to assume that Sales Departments operate in a reward and penalty structure. On the one hand a cost penalty might be incurred as a function of the length of the quoted job lead-time and, on the other hand, a cost penalty might be incurred as a function of the tardiness of the job. So the firm, in some way or another, is penalized for assigning long order lead times. This penalty decreases by assigning short lead times. Also it is assumed that the firm is penaliz

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