On the combined effect of due date setting,order release,and output control: an assessment by simulation

Workload Control is a production control concept for high-variety shops built on the principle of input/output control. The literature, however, has argued that input/output control overemphasises throughput improvements to the detriment of the timing of individual orders and, consequently, that it needs to be supplemented by a preceding customer enquiry stage where due dates are set. Yet, although there are broad separate literature streams on due date setting, order release, and output control, there is a lack of research on the three functions together. In response, this study uses simulation to assess the combined performance effect of all three functions. Results show that each control function can be related to a specific performance objective. The degree of emphasis that should be placed on each function, therefore, depends on a company’s specific performance needs. Due date setting and capacity adjustments (output control) are shown to support each other as they address different performance objectives. Meanwhile, order release (input control) is effective in reducing work-in-process and can play a role in making throughput improvements when capacity adjustments are not possible. Findings enhance existing literature on the diagnosis of delivery reliability performance in high-variety shops, with important implications for research and practice.