Identifying potential bottlenecks in production systems using dual prices from a mathematical programming model

Abstract

The importance of identifying bottlenecks in production systems for effective production control and continuous improvement is well recognised. A useful definition of a bottleneck is the station to whose performance the performance of the overall production system is most sensitive. However, obtaining accurate estimates of the impact of changes in a given station's performance on the performance of a production system is often difficult. This paper uses the dual prices associated with production resources in a production planning model to support the identification of bottlenecks as the product mix in the system changes over time. The planning model considers queueing behaviour at production resources using non-linear clearing functions. Relationships between the dual prices of different resources are derived, and the bottleneck information obtained is compared to that from a model that does not consider queueing behaviour.