Flexibility of production ordering systems

Abstract

The flexibilityof production ordering systems as medium range production control systems are studied. The changes affecting flexibility, production ordering systems as responses to changes, and the performance measures of flexibility are clarified. On the basis of this framework, mathematical models of production system and production ordering systems are developed to evaluate their flexibility. Two types of changes are considered: demand fluctuation and downtime fluctuation due to machine breakdown, and two models for 'push-type' and 'pull-type' production ordering systems are investigated. By simulating the models, the amplifications of production quantities and inventory levels as flexibility measures for each type of production ordering system are analysed and the flexibility compared.

Flexibility dimensions to control the bullwhip effect in a supply chain

“…This effect has been studied extensively, both from industrial and theoretical points of view, and multiple causes have been mentioned in the literature (Forrester 1969, Muramatsu et al 1985, Takahashi et al 1994, Wu and Meixell 1998, Lee et al 2000, Warburton 2004, Sterman 2006. Indeed, it has been argued that flexibility in a supply chain increases when the bullwhip effect is reduced, reflecting how well a management method adapts the inventory and production variability to the demand variability (Muramatsu et al 1985, Takahashi et al 1994. Exploring this idea, Pereira (1999) found general expressions for amplification in the case of push, pull and hybrid ordering methods.…”

Bullwhip-Effect and Flexibility in Supply Chain Management

“…This effect has been extensively studied, both from industrial and theoretical points of view (Takahashi et al, 1994). Among the multiple reasons mentioned in literature (Lee et al, 2000;Takahashi et al, 1994;Warburton, 2004;Wu and Meixell, 1998), four features are frequently reported at the origin of this phenomenon (Lee et al, 1997): demand signal processing, strategic ordering behavior, ordering batching and price variations. Geary et al (2006) pointed out ten common causes of bullwhip-effect and the subsequent re-engineering principles to eliminate or prevent amplification.…”

Dimensions of flexibility in apparel production

“…Under some conditions, pull type production ordering systems are more flexible than are push type systems. However, a simulation study demonstrated that the influences of downtime fluctuation makes a push-type production ordering system more flexible than a pull-type system (Takahashi, et al, 1994).…”

“…Pull-type production systems calculate production order on the basis of feedback information and the actual production quantity of the succeeding operation or stage in the production process (Takahashi, et al, 1994). Demand originates at the end of the production process, so that information flows from the end to the beginning.…”

“…Demand for production originates at the raw material stage, when the materials are ready to enter the process. Each operation or stage in the production process is activated by the completion of the operation that precedes it, so that work is essentially pushed through the process (Takahashi, Hiraki, & Soshirodas, 1994).…”