An Evaluation of Capacity Sensitive Order Review and Release Procedures in Job Shops

Abstract

ABSTRACT We investigate the performance of capacity‐sensitive order review and release (ORR) procedures in job shop environments that have not been previously explored. Previous research has ignored the case of job shops which must perform to very tight due‐dates because of time‐sensitive customers. We propose and test a new capacity sensitive ORR procedure called path based bottleneck (PBB) in such environments, along with the modified infinite loading (MIL) procedure which has been shown to work well in several studies. We compare the performance of these two controlled release rules with that of immediate release rule under different conditions of capacity utilization and customer specified exogenous duedates. Our results indicate that PBB performs well in lowering total costs when due‐dates are tight, while MIL is a better procedure with relatively loose to medium due‐dates. We also show that in many cases, the shortest processing time (SPT) dispatching rule is a superior performer than a due‐date based rule like critical ratio (CR); a conclusion which is contrary to the existing research in this area. In addition, the shop floor control policies recommended are shown to be sensitive to the cost structure of the firm. The managerial implications of this research in providing effective shop floor control in job shops operating under tight due‐date conditions are also discussed.