Determining the capacity and its level of utilization in make-to-order manufacturing: A simple deterministic model for single-machine multiple-product case

A simple deterministic model is developed to determine the capacity and its level of utilization for a single specific machine producing multiple products in make-to-order manufacturing plants. It integrates the variables of processing time, set-up time, product defective rate, and maintenance downtime. The number of product types and the number of lots per product are critical determinants. The model first computes the net production quantities per unit of time for each product type and for the product mixtures, and then, capacity utilization figures are derived based on the net capacity inverse coefficients and net product quantities per planned time unit for each product type and product mixture.