Scheduling and Ordering Production Policies in a Limited Capacity Manufacturing System: The Multiple Replenishment Products Case

Abstract

This paper formulates production policies to maximize the performance of an apparel manufacturing system that replenishes basic items characterized by a flat average demand. The simulation-based model compares a number of production strategies and chooses an ordering and scheduling policy that increases the overall performance of the supply chain. In doing so, different supplier configurations (i.e., different capacity resources and cost structures) are compared and the optimal strategy is selected to maximize the supplier’s profit while maintaining a high order fill rate and minimizing the risk of carrying inventory. The system’s performance is then compared to an upper limit, calculated using Linear Programming.