Optimization Model of Planning Quantity Put into Production of MTO System

In order to reduce the negative influence caused by actual output that is larger or smaller than customers´ order quantity on enterprise benefit, this paper studies the output decision of product planning under MTO model. The analysis points that since different customers´ orders have different requirements on specifications, process difficulty, materials, etc, and production system has uncertainty, it will result in stochastic volatility of product qualification ratio during production. The research assumes the product qualification ratio obey the normal distribution in a certain range. It takes the minimum loss as expectation and establishes the optimized decision for continuous model of planned output. Math CAD is applied to simulate our model and the model sensitivity of related parameters is analyzed. For production practice in one order-style production enterprises, the planning output decision discrete model of product is also established. The numerical computation results verify the effectiveness of decision model improved in this paper.