A Discrete Event Simulation to Facilitate Hybrid Production Planning in a Paper Production Plant

This study investigates a paper production facility that markets its products in Europe and its producing strategy is purely make-to-order (MTO). The effects of deploying a make-to-stock (MTS) production strategy for specific end products is analysed on a scenario building basis via a discrete event simulation model. Initially, the current situation where the production strategy is purely MTO was simulated and validated. Afterwards, end products were evaluated if they can be produced as MTS. Products that are qualified to be produced as MTS had their simulated production schedule developed on a spreadsheet-based model. Forecasting for the new production schedule was based on four time series forecasting methods. Results of various simulation runs highlight that due to postponement, the MTS production strategy for the qualified final products leads to a leaner warehouse flow.