Development of a robust operational planning procedure for a make-to-order environment

In this paper, we present a robust operational planning procedure for a make-to-order environment, which aims at minimising set-ups, while taking into account order deadlines and allowing for capacity flexibility. In addition, the procedure tries to overcome some shortcomings in the planning aspect of traditional ERP systems through the use of rough cut modelling approximations. To assess the performance of the procedure, it is applied to data from a real-life company by means of a simulation model. The results have shown valuable insights into the advantages of interchangeable lines, the importance of the planning period, the dangers of inappropriate batch sizing decisions and the consequences of ignoring the impact of external variability sources. Furthermore, the procedure can greatly enhance transparency, knowledge and information management for the company and its supply chain partners by integrating it as a fine-tuning tool in an enhanced ERP system.