TAILIEUCHUNG - Combined make-to-order and make-to-stock in a food production system

Like other developing countries, Fiji’s stock market is also playing a crucial role in the economy. It encourages companies to make IPOs and also provides a regulated market for the trading of existing shares between investors. Its basic function is a secondary market role facilitating the exchange of previously issued shares. It can be seen as an emerging stock market because there is an increase in the market capitalization, stock market size and number of companies listed from the period 1996 to 2005. Thus the market is in the development phase. But at the same time the SPSE is. | Combined make-to-order and make-to-stock in a food production system Chetan Anil Soman Dirk Pieter van Donk Gerard Gaalman Department of Production Systems Design Faculty of Management and Organization University of Groningen . Box 800 Groningen 9700 AV The Netherlands SOM-theme A Primary processes within firms Abstract The research into multi-product production inventory control systems has mainly assumed one of the two strategies Make-to-Order MTO or Make-to-Stock MTS . In practice however many companies cater to an increasing variety of products with varying logistical demands . short due dates specific products and production characteristics . capacity usage setup to different market segments and so they are moving to more MTO-production. As a consequence they operate under a hybrid MTO-MTS strategy. Important issues arising out of such situations are for example which products should be manufactured to stock and which ones on order and how to allocate capacity among various MTO-MTS products. This paper presents the state-of-the-art literature review of the combined MTO-MTS production situations. A variety of production management issues in the context of food processing companies where combined MTO-MTS production is quite common are discussed in details. The authors propose a comprehensive hierarchical planning framework that covers the important production management decisions to serve as a starting point for evaluation and further research on the planning system for MTO-MTS situations. Corresponding author. Tel. 31-50-3637924 Fax 31-50-3632032 E-mail 1 1. Introduction A majority of the operations management research characterizes production system as either Make-To-Order MTO or Make-To-Stock MTS . The MTO systems offer a high variety of customer-specific and typically more expensive products. The production planning focus is on order execution and the performance measures are order focussed . average response time average .

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