Order partitioning and Order Penetration Point location in hybrid Make-To-Stock/Make-To-Order production contexts

Hybrid Make-To-Stock (MTS)/Make-To-Order (MTO) is one of the product delivery strategies which have recently attracted practitioners’ and academicians’ interest to meet requirements of today competitive environment. Two important decisions involved in hybrid MTS/MTO context are order partitioning and determining Order Penetration Point (OPP) location. In this paper, a model is developed to first decide on which product is manufactured upon MTS, which one upon MTO and which one upon hybrid strategy. Then, a fuzzy analytic network process (ANP) is utilized to locate the OPP for the products which are decided to be manufactured upon hybrid strategy. Finally, a real industrial case study is reported to show applicability of the proposed model.

► The paper is the first one which addresses order partitioning and Order Penetration Point location integrated.
► The paper introduces new qualitative and quantitative criteria to determine Order Penetration Point location.
► The paper adopts fuzzy analytic network process to tackle both diverse inter-related criteria and expert judgments systematically.