Push/Pull Parts Production Policy Optimization in the ATO Environment

Within the Assembly to Order (ATO) production strategy, the common approach is to produce the parts to assemble with a Push-Make to Stock policy.In recent decades, the effects of the modern Just in Time (JIT) moved to a Pull-Make to Order policy. Assembled parts characterized by wide variety and huge storage space utilization are critical, and a proper Push/Pull production policy definition is required. An appropriate balance of storage space utilization and setup times leads to the optimization of the production policy. The aim of this paper is to define a bi-objective mathematical optimization model to assign the most suitable production policy to the parts within the production mix in an ATO industrial context. A numerical simulation and an operative case study showcases the model application, proving the industrial relevance of this research.