Capacity coordination in hybrid make-to-stock/make-to-order contexts using an enhanced multi-stage model

  • Masoud Rabbani University of Tehran
  • Sara Motevali Haghighi University of Tehran
  • Hamed Farrokhi-Asl Iran University of Science & Technology
  • Neda Manavizadeh KHATAM University
Keywords: Production Planning, Hybrid MTS/MTO, Capacity Coordination, Acceptance/Rejection, Lot Sizing, Supplier Selection, Outsourcing


One of the most attracting production systems that has recently been vastly explored by practitioners and academicians is hybrid make-to-stock/make-to-order. Having a hierarchical production planning structure considered, this paper develops a multi-stage model to cope with the operational decisions, including order acceptance/rejection, product lot sizing, overtime capacity planning, outsourcing, and due date setting. Moreover, the proposed framework also comprises providing alternative products for the coming orders in order to enhance service level of the firm to the customers. In order to validate the presented framework, it is applied in a real industrial case study and the obtained results approve validity of the proposed framework.