Scheduling Method for MTS/MTO Production System

In order to fulfil the demand from customers, company can carry out its production activities using several policies. There are two policies which are commonly used, Make-to-Stock (MTS) and Make-to-Order (MTO). Both of these policies not only can be implemented separately, but also can be combined on a production floor, for example in foundry which the production activities have a flowshop characteristic. This paper proposes a Base-Stock Control System (BSCS) model to classify each incoming orders into the category of MTS and MTO. Each incoming orders will be first classified into the category of High Volume (HV) and Low Volume (LV). All products in these two categories will be and scheduled using two alternative methods, the First-In-First-Out (FIFO) and Priority Rule (PR). The production activities are scheduled by considering the capacity of each work station and performed in batch using overlapping operations. Several scenarios conducted on the proposed method reveals production delay reduction from 36% to 5.3 % and also the total amount of finished products in ten months horizon planning by approxi mately 66.6%.