Multi-period Customer Service Level Maximization under Limited Production Capacity

Abstract

This paper will focus on a make-to-stock multi-period order fulfilment system with random orders from different classes of customers under limited production circumstances. For this purpose a heuristic algorithm has been developed aimed at maximizing the customer service level in any cycle and in the entire multi-period. In this paper, in order to validate the results obtained with this algorithm, a mixed integer programming model was developed that is based on the same assumptions as the algorithm. The model takes into account the priorities of customer groups and the balanced customer service level within the same group. The presented approaches are applied to a real example of Fast Moving Consumer Goods. Their comparison was carried out in several scenarios.