Use of DES to develop a decision support system for lot size decision-making in manufacturing companies

There exists a wide range of optimization models in the Operations Management (OM) community to solve complex problems such as lot sizing. However, their practical performance is often criticized due to the complexity of implementation and insufficient applicability in real-world decision processes....

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Main Authors: Lukas Budde, Shuangqing Liao, Roman Haenggi, Thomas Friedli
Format: Article
Language:English
Published: Taylor & Francis Group 2022-12-01
Series:Production and Manufacturing Research: An Open Access Journal
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/21693277.2022.2092564
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author Lukas Budde
Shuangqing Liao
Roman Haenggi
Thomas Friedli
author_facet Lukas Budde
Shuangqing Liao
Roman Haenggi
Thomas Friedli
author_sort Lukas Budde
collection DOAJ
description There exists a wide range of optimization models in the Operations Management (OM) community to solve complex problems such as lot sizing. However, their practical performance is often criticized due to the complexity of implementation and insufficient applicability in real-world decision processes. These theory-driven approaches are either simple to compute, but only focus on single aspects of the decision without being able to capture the practical problem comprehensively, or are complex computational models with limited practicability. We apply a Design Science Research approach to resolve this issue and show how lot size decision-making models should be designed to thoroughly support managers. Our innovative model combines Discrete Event Simulation (DES) with OM methods and is developed and tested in a case study in the metal processing industry. Results reveal that the model is suitable to provide transparency about effects and a range of efficient solutions.
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spelling doaj.art-0f1b9e149c754707aaa4e791cca356a12022-12-22T03:32:38ZengTaylor & Francis GroupProduction and Manufacturing Research: An Open Access Journal2169-32772022-12-0110149451810.1080/21693277.2022.2092564Use of DES to develop a decision support system for lot size decision-making in manufacturing companiesLukas Budde0Shuangqing Liao1Roman Haenggi2Thomas Friedli3ITEM, Institute of Technology Management at the University of St. Gallen, St. Gallen, SwitzerlandIPEK, Eastern Switzerland University of Applied Sciences, Rapperswil, SwitzerlandIPEK, Eastern Switzerland University of Applied Sciences, Rapperswil, SwitzerlandITEM, Institute of Technology Management at the University of St. Gallen, St. Gallen, SwitzerlandThere exists a wide range of optimization models in the Operations Management (OM) community to solve complex problems such as lot sizing. However, their practical performance is often criticized due to the complexity of implementation and insufficient applicability in real-world decision processes. These theory-driven approaches are either simple to compute, but only focus on single aspects of the decision without being able to capture the practical problem comprehensively, or are complex computational models with limited practicability. We apply a Design Science Research approach to resolve this issue and show how lot size decision-making models should be designed to thoroughly support managers. Our innovative model combines Discrete Event Simulation (DES) with OM methods and is developed and tested in a case study in the metal processing industry. Results reveal that the model is suitable to provide transparency about effects and a range of efficient solutions.https://www.tandfonline.com/doi/10.1080/21693277.2022.2092564Lot sizesmart manufacturingdigital technologiesdecision-support systemsDesign Science Research
spellingShingle Lukas Budde
Shuangqing Liao
Roman Haenggi
Thomas Friedli
Use of DES to develop a decision support system for lot size decision-making in manufacturing companies
Production and Manufacturing Research: An Open Access Journal
Lot size
smart manufacturing
digital technologies
decision-support systems
Design Science Research
title Use of DES to develop a decision support system for lot size decision-making in manufacturing companies
title_full Use of DES to develop a decision support system for lot size decision-making in manufacturing companies
title_fullStr Use of DES to develop a decision support system for lot size decision-making in manufacturing companies
title_full_unstemmed Use of DES to develop a decision support system for lot size decision-making in manufacturing companies
title_short Use of DES to develop a decision support system for lot size decision-making in manufacturing companies
title_sort use of des to develop a decision support system for lot size decision making in manufacturing companies
topic Lot size
smart manufacturing
digital technologies
decision-support systems
Design Science Research
url https://www.tandfonline.com/doi/10.1080/21693277.2022.2092564
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