Title: A multi-product lot size in make-to-order supply chain using discrete event simulation and response surface methodology

Authors: Wafik Hachicha, Ahmed Ammeri, Faouzi Masmoudi, Habib Chabchoub

Addresses: Unit of Mechanic, Modelling and Production (U2MP), Engineering School of Sfax, B.P. 1173, Sfax 3038, Tunisia; Department of Industrial Management, High Institute of Industrial Management of Sfax (ISGI), B.P. 954, Sfax 3018, Tunisia. ' Unit of Logistic, Industrial and Quality Management (LOGIQ), High Institute of Industrial Management of Sfax, B.P. 954, Sfax 3018, Tunisia. ' Unit of Mechanic, Modelling and Production (U2MP), Department of Mechanical Engineering, Engineering School of Sfax, B. P.W, Sfax 3038, Tunisia. ' Unit of Logistic, Industrial and Quality Management (LOGIQ), University of Economic Sciences and Management, Sfax, Tunisia

Abstract: This paper develops a simulation optimisation approach for solving the Lot-Sizing Problem (LSP) in Make-to-Order (MTO) supply chain. For this purpose, a discrete event simulation model was firstly implemented as a tool in estimating Order Mean Flow Time (OMFT) performance. Secondly, a multiple-objective optimisation was achieved by applying Response Surface Methodology (RSM). A comprehensive case study is detailed which involves a multi-product, multi-stage, multi-location production planning with capacity-constrained and stochastic parameters such as lot arrivals order, transit time, set-up time, processing time, etc. The objective of the proposed approach is to determine the fixed optimal lot size for each manufacturing product type that will ensure OMFT target value for each finished product type. The study results illustrate that the LSP in MTO sector is viable and provide a prototype for further research on simulation optimisation approaches.

Keywords: LSP; lot sizing problem; supply chain management; SCM; supply chain coordination; make-to-order; discrete event simulation; response surface methodology; RSM; multiple-objective optimisation; desirability function; simulation optimisation; order mean flow time; multi-product production planning; multi-location production planning; multi-stage production planning; capacity constraints.

DOI: 10.1504/IJSEM.2010.033366

International Journal of Services, Economics and Management, 2010 Vol.2 No.3/4, pp.246 - 266

Available online: 01 Jun 2010 *

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