Rule based vs Optimization based Workload Control with and without Exogenous Lead Times: An Assessment by Simulation

Abstract

Order release is a key production planning and control function, specifically in high variety contexts. A large literature on release methods that balance the workload consequently emerged. These Workload Control methods can be rule based, using a simple greedy heuristic, optimization based or optimization based with lead times that are exogenous. Although all three types of methods have the same objective, their performance has never been compared. Using simulation, this study shows that a better on time delivery performance of jobs can be achieved by the two optimization based release methods. Most importantly, optimization based methods that assume lead times to be exogenous significantly outperform alternative methods in terms of tardiness performance. Rule based and optimization based Workload Control without exogenous lead times overemphasize average lateness reduction, which leads to sequence deviations that offset performance improvements through balancing. In contrast, Workload Control methods that assume lead times to be exogenous limit sequence deviations, which leads to a significant reduction in dispersion of lateness. This has important implication for the future design of order release methods, and managerial practice.

Keywords

Workload control / order release / production planning / production control / make-to-order production

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