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Analytic Models for When and How to Expedite in Make-to-Order Systems

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IIE Transactions

Abstract

Expediting is defined as using overtime or subcontracting to supplement regular production. This is usually done when the number of backorders has grown to be unacceptably large. In this paper, we consider analytic models for deciding when and how to expedite in a single-product make-to-order environment. We derive the structure of the optimal expediting policy in both continuous- and discrete-time cases. The continuous-time model corresponds best to subcontracting and the discrete-time model corresponds to either overtime or subcontracting. Models for performance analysis of the continuous-time case are also given.

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Authors and Affiliations

  1. Department of Industrial and Operations Engineering, University of Michigan, Ann Arbor, MI, 48109-2117, USA

    Hasan Arslan

  2. School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, GA, 30332-0205, USA

    Hayriye Ayhan

  3. John M. Olin School of Business, Washington University in St. Louis, St. Louis, MO, 63130-4899, USA

    Tava Lennon Olsen

Authors
  1. Hasan Arslan
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  2. Hayriye Ayhan
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  3. Tava Lennon Olsen
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Correspondence to Tava Lennon Olsen.

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Arslan, H., Ayhan, H. & Olsen, T.L. Analytic Models for When and How to Expedite in Make-to-Order Systems. IIE Transactions 33, 1019–1030 (2001). https://doi.org/10.1023/A:1010946603476

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  • DOI: https://doi.org/10.1023/A:1010946603476

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