The choice of a production philosophy by a manufacturing company is import- ant. Costs for holding inventory and costs for missing due-dates on customer orders are key components of overall profitability. In this paper, an optimization model of a new, yet simple, kind of horizontally integrated push/pull hybrid production system (HIHIPS) is formulated that resolves the tradeoff between these two important cost components. At optimum, it will suggest either an all- push, all-pull, or a mixed operation configuration.
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