Fundamentals of order acceptance and scheduling of rush orders

Rush orders represent a challenging task for companies and therefore an interesting subject for academic research as well. Rush orders have throughput times below the standard throughput time. Hence they have to be processed with short throughput times in production which can be achieved by prioritization. When handled reasonably, rush orders can increase a company's market share and contribute positively to the result. But they can also evoke longer throughput times for standard orders and thereby a poor delivery reliability. Today the question how rush orders can be handled without deteriorating the delivery performance is still subject to research. While the achievable throughput times and their influence on the throughput time of standard orders can be modeled, three questions remain open: 1) At which rush order share do rush orders start to compete for the work center, so that the prioritization loses effectiveness? 2) How should an order acceptance rule use this boundary rush order share? 3) How can rush orders be scheduled in order to assure high delivery reliability? The aim of this paper is to present answers to the stated questions. After an introduction, we will present the state of the art for order acceptance and scheduling of rush orders. Then we will present the modeling of the critical rush order share and the modeling of the rush orders' concurrence probability. The following section will introduce the design of an order acceptance and scheduling method which uses the critical rush order share in order to maintain a target value for rush orders and schedules rush and standard orders.

Subjects

Order acceptance

Order scheduling

Production planning and control (PPC)

Rush orders

DDC Class

670: Industrielle Fertigung

Options

Fundamentals of order acceptance and scheduling of rush orders