Judicious order acceptance and order release in make-to-order manufacturing systems

This paper explores a two-stage input control system for fixed capacity make-to-order manufacturing systems (with heavy job tardiness penalties), that selectively accepts incoming orders and holds the accepted ones in a pre-shop queue prior to releasing them to the shop floor. Single-stage input control systems that only allow orders to be delayed in a pre-shop queue (i. e. they do not allow some orders to be rejected) have been previously investigated and found to negatively impact overall due-date performance. The hypothesis motivating this research is that judiciously rejecting a subset of incoming orders can prevent the order release queue from being overloaded when a surge of demand occurs. The input control system is evaluated via experiments using a discrete-event simulation model of a fixed capacity manufacturing system. The experiments reported here suggest that holding orders in the preshop queue does not improve due date performance, and that judiciously rejecting orders on its own is a viable alternative mechanism of input control that can deliver improved performance.