Effectiveness of capacity rationing heuristics in make to order environment Online publication date: Sat, 29-Aug-2015
by Mehmet Barut; Mehmet Bayram Yildirim; V. Sridharan
International Journal of Advanced Operations Management (IJAOM), Vol. 7, No. 2, 2015
Abstract: This paper investigates the effectiveness of a dynamic capacity-rationing heuristic for order acceptance and rejection in a capacitated make-to-order manufacturing environment. The heuristics developed for managing capacity has been shown to work better than accepting orders on a first-come, first-served basis. However, realised effectiveness versus potential effectiveness with respect to optimum has not been investigated. Results of this study reveal that the rationing heuristic is very effective in yielding results in proximity of optimum solution when customer segments are very distinct or highly differentiated and when implied utilisation is very high. On the other hand, when the attractiveness of higher profitable customer segment diminishes and capacity is not tight there is a significant potential to improve the heuristic.
Online publication date: Sat, 29-Aug-2015
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Advanced Operations Management (IJAOM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com