Order release optimisation for time-dependent and stochastic manufacturing systems

Abstract

Order release optimisation is essential in production planning, especially in discrete manufacturing. Order release planning models with load-dependent lead times must anticipate the time-dependent work-in-process and output for any given release schedule and thus require an anticipation model that approximates the time-dependent behaviour of queueing systems. We present a generic optimisation model for order release planning in stochastic, non-stationary manufacturing systems that includes a well-defined interface for the anticipation model. We develop two stationary backlog carryover (SBC) approaches to approximate time-dependent queueing behaviour and prove their consistency with the order release model. The resulting nonlinear programming model is shown to be a special case of the well-known clearing function models. A numerical study demonstrates that the optimised order releases for different demand patterns are close to the optimum that results from simulation-based optimisation even for extreme demand and release patterns. The resulting output closely matches the simulated output with some deviations.