Capacity and Inventory Planning for Make-to-Order Production Systems

Research output: Book/ReportBook


The book presents different models for the simultaneous optimization problem of capacity investment and work release rule parameterization. The overall costs are minimized either including backorder costs or considering a service level constraint. The available literature is extended with the integration of a distributed customer required lead time in addition to the actual demand distribution. Furthermore, an endogenous production lead time is introduced. Different models for make-to-order production systems with one or multiple serial processing stages are developed. Capacity investment is linked to the processing rates of the machines or to the number of the machines. Results are equations for service level, tardiness, and FGI lead time in such a production system. For special cases with M/M/1 and M/M/s queues explicit solutions of the optimization problems or optimality conditions concerning capacity investment and work release rule parameterization are provided.
Original languageEnglish
ISBN (Print)0075-8442
Publication statusPublished - 2014

Publication series

NameLecture Notes in Economics and Mathematical Systems
PublisherSpringer Verlag
ISSN (Print)0075-8442


  • Inventory
  • Make-to-Order Manufacturing
  • Production Economics
  • Production Systems
  • Queuing Theory
  • Stochastic Modelling


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