Queueing Analysis on a MTO Production System Consisting of MTS Pre-Production

We consider a two-station hybrid MTO/MTS production system confronting random special demands for custom products, in which, the first station is a MTS system providing the semi-finished products to be used at the second station. The second station, which is a MTO system, then performs the additional alternating works for the corresponding custom product. In our system, the production of the first station is controlled under the base-stock policy. The steady-state probabilities are obtained by using matrix-geometric method. We then evaluate the waiting times of special demands and the corresponding performances under base-stock control policy. Furthermore, we determine the optimal base-stock level numerically.