Mass Customization Production Planning System by Advance Demand Information Based on Unfulfilled-order-rate

In this paper, we try to model for ‘Naiji System’ which is a unique corporation between a maker and suppliers in Japan. We propose Mass Customization Production Planning & Management System (MCPS) based on unfulfilled-order-rate by using Advance Demand Information, which is called ‘Naiji’. This model is formulated as a nonlinear stochastic programming problem which minimizes the sum of production cost and inventory holding cost subject to the set of probabilistic constraint and some linear production constraints. We propose the new upper bound SOn (ρmin) to estimate the unfulfilled-order-rate more strictly. The procedure to find a good solution is developed by solving the linear programming problem repeatedly on the basic solution strategy that is ‘relaxation’. A computational load to obtain a solution by the proposed indicator is shown to be very small. Finally, an availability of the procedure is shown.