Production Scheduling with Finite Output Buffers for Make-to-order Manufacturing

In make-to-order manufacturing environments, optimized production schedules are crucial. In this paper, we present a model for production scheduling in make-to-order environment with limited capacity and finite output buffers by using integer programming approach. In a system consist of several stages, various types of products are produced responding directly to customer orders which are characterized by their quantity, arrival date and due date. The orders completed before the due date will be held in an output buffer until they are delivered to the customer. The orders completed after the due date are considered late and a tardiness penalty incurs. The objective of the model is to maximize the profits by considering the limited capacity, order due dates, finite output buffers and related penalty cost. Numerical examples modeled after real-world make-to-order environment are provided and some computational results with the proposed model are reported.