Performance Evaluation of Reserved Capacity for Due Date Promising

In many make-to-order production systems customers ask due date confirmed and kept. Unexpected urgent orders from valuable customers often requires short lead times, which causes existing orders in the production schedule to be delayed so that their confirmed due dates cannot be met. This Imposes significant uncertainty on the production schedule in a supply chain. In this paper, we propose a new concept of capacity reservation as a viable tool for due date promising and suggest its operational alternatives. Simulation results show that the reserved capacity scheme appears to outperform simple FCFS scheduling policy in terms of the number of valuable urgent orders accepted and total profit attained.