A flexible production rate has been discussed and analyzed in the literature for different business situations. This paper aims to consider this for a make‐to‐order (MTO) environment.
Generally the production rate and cycle time are significant parameters among others, where other parameters might include demand, and production time cost. An improvement in the cycle time or the cycle time reduction is a prime objective in the context of an overall productivity improvement particularly in the MTO environment. In order to gain some insights, an interaction of the production rate and cycle time is described.
The focus of the present paper is on the supply chain cost using these parameters among others. A framework for the conceptual understanding and analysis is provided along with the practical implementation issues.
A relevant measure for the degree of flexibility (DOF) in the context of supply chain is also discussed in this paper.
