Modeling of the order delivery cycle management in MTO companies

Abstract: Engineer-to-order (ETO) and make-to-order (MTO) companies make mainly customised products in relatively low volumes. Competition is based on price, technical expertise, delivery time and reliability in meeting due dates. Each product is almost unique in terms of design, manufacturing and technological requirement and precedence constraints. As a consequence, the lead time required to complete the types of job is high and routings processing times are highly uncertain. Such uncertainty, added to that associated to customer orders, makes the production planning and control problem a very difficult one. The aim of the paper is to design and to develop a model for supporting the order to delivery cycle, with particular regard to small and medium enterprises. A logistic curve is structured for modelling "S" curve of costs and times of a job.