Design And Optimization Study On S Company MTO-MTS Combined Production Model

G Company is the leader in Global tufting carpet industry, which has been engaged in the design, research, manufacturing and sales of high end carpet tile. His competitors entered Chinese market several years earlier. G Company did not enter Chinese market until 2013, he establish his first overseas plant outside USA, S company in China. G company has the biggest market share in global market and his design and reputation leads the whole carpet tile industry, his market share in China is much lower than his competitor due to late presence. His competitor has secures its leading role in China.Mission of S Company is to pursue the competitor and grab market share. S company production planning is low batch size with multi SKUs. In order to avoid high stock, he has been applying MTO (make to order) production since establishment. S promise customer 4 weeks as standard lead time according to operation of US headquarters. But booming Chinese market and uncertain demand has a much higher requirement on S delivery ability, customer often request S company to deliver in very short time, sometime even immediately upon order placed. S company need to strength his comprehensive competency by improve his delivery ability.Another problem S company faces is the popular problem of manufacturing industry, fluctuation of demand. As S company production applies MTO, production planning is wholly based on orders, which can be often unstable. This lead to the imbalance of production, the backorder level is quite unstable. In the meantime, the order size varies, those small orders result in low production efficiency. This article is talking how S company change current MTO to MTS-MTO combined production planning, according to market demand and company strategy. To balance the actual order fluctuation by creating some stock when the backorder level is low, consequently and shorten lead time, improve on time delivery rate and balance production. After implementation of MTS-MTO combined production planning, stock service level, on time delivery rate, production efficiency all improved.