IJIMT 2013 Vol.4(1): 1-5 ISSN: 2010-0248
DOI: 10.7763/IJIMT.2013.V4.345

Application of Fixed Order Period Lot Sizing Rule in Capacitated Make to -Order Production Systems

S. H. Tang, Mehdi Vasili, Mohammadreza Vasili, and N. Ismail
Abstract—In this paper, the fixed order period (FOP) lot sizing rule is considered as an appropriate lot-sizing strategy; which, through establishing a work-ahead-window, is used for modeling make-to-order (MTO) production systems with limited available capacity. FOP in an MTO environment summarizes the known customers’ demands of the next work-ahead-window periods into one production lot. Establishing a work-ahead- window helps to smooth the production and buffer the production line from demand variability by pre-production of orders that are needed later. In other words, the orders that should be delivered in periods with higher required capacity than the available capacity are pre-produced in periods with lower required capacity. Generally, the fluctuation of the customer required capacity in an MTO environment is smoothed by applying an average operator in a way that the long term average customer required capacity is always less than the available capacity.

Index Terms—Capacity order characteristic, fixed order period (FOP), make-to-order (MTO), work-ahead-window.

S. H. Tang and N. Ismail are with the Department of Mechanical and Manufacturing Engineering, Faculty of Engineering, Universiti Putra Malaysia, 43400 UPM Serdang, Selangor, Malaysia (e-mail: saihong@eng.upm.edu.my, napsiah@eng.upm.edu.my). 
Mehdi Vasili was with the Department of Mechanical and Manufacturing Engineering, Faculty of Engineering, Universiti Putra Malaysia, 43400 UPM Serdang, Selangor, Malaysia (e-mail: m.vassilious@gmail.com). Mohammadreza Vasili is with the Department of Industrial Engineering, Lenjan Branch, Islamic Azad University, Esfahan, Iran (e-mail: vasili@iauln.ac.ir).

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Cite: S. H. Tang, Mehdi Vasili, Mohammadreza Vasili, and N. Ismail, "Application of Fixed Order Period Lot Sizing Rule in Capacitated Make to -Order Production Systems," International Journal of Innovation, Management and Technology vol. 4, no. 1, pp. 1-5, 2013.

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