Master production scheduling policy and rolling schedules in a two-stage make-to-order supply chain

This research studies master production schedule (MPS) and advanced order commitment (AOC) in two-stage supply chains. Experimental analysis, based on computer simulation, evaluates the impact of environmental and MPS design factors on optimal policy design as measured by schedule cost and stability. The vendor's order-size flexibility is the major factor impacting system performance. The manufacturer's optimal MPS policy is often inefficient for the vendor, resulting in total costs significantly greater than the optimal system policy. The research provides insight into the dynamic nature of scheduling and procurement systems and how they can be better coordinated through the MPS/AOC policy design.