Capacity coordination under demand uncertainty in a hybrid make-to-stock/make-to-order environment: A system dynamics approach

Hybrid make-to-stock (mts)/make-to-order (mto) production systems have recently attracted the interest of practitioners and academicians in the field of operations management, since these systems benefit from both stock-based and orderdriven strategies. in this paper, capacity coordination dynamics of a hybrid mts/mto production system is addressed, whose continuous production line is comprised of three workstations. also, the product portfolio of the considered system includes three kinds of product; pure mts, pure mto, and hybrid mts/mto. in the developed model, system performance is explored and assessed in terms of system delivery lead time. to do so, three capacity coordination rules are studied; simple average of expected demands, weighted average of expected demands, and the dynamic mechanism for the difference between target and actual delivery lead times. moreover, the effects of demand uncertainty are taken intoaccount