Abstract
Rush orders are immediate customer demands which exceed the expectation of the currently effective MPS (master production schedule). Even though such orders are quite common to companies in a dynamic market, most existing studies published in the relevant literature seldom discuss the economical justification of accepting such an order. This paper proposes a mixed integer programming model for computing the cost of accepting the production of a rush order. The computed cost value could serve as a valuable reference for justifying the economics of accepting a rush order, and help determine its pricing strategy.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have