## 2 Literature Review  
In [5], a comprehensive review of Make-To-Stock (MTS) and Make-To-Order (MTO) production systems is provided, offering valuable insights into the foundational concepts and strategies that have shaped these models. Building on this foundation, this section delves into the latest advancements and research focused specifically on hybrid MTS-MTOsystems. Recent studies have explored the dynamic interplay between MTS and MTO strategies, seeking to optimize production efficiency while balancing inventory costs and responsiveness to customer demand. These works highlight the growing importance of flexible, hybrid approaches in today's complex manufacturing environments, where adaptability and efficiency are crucial for maintaining a competitive edge. [PERSON] et al. [7] introduced two models designed to enhance the efficiency of hybrid Make-To-Stock (MTS) and Make-To-Order (MTO) production systems. The first model operates on a static basis, maintaining a fixed decoupling point, while the second model features a dynamic approach, allowing for real-time adjustments to the decoupling point based on fluctuating customer demand. The numerical results from their study clearly demonstrated the superior performance of the dynamic model, particularly in its ability to respond to changing market conditions and order patterns. The dynamic model proposed by [PERSON] et al. [7] functions by collecting incoming customer orders and subsequently adjusting the decoupling point to optimize the balance between MTS and MTO operations. However, the model adapts the decoupling point primarily when new orders are released, which may limit its responsiveness to other critical events within the manufacturing system. In contrast, the model proposed in this research takes the concept of dynamic adjustment a step further by continuously monitoring and adapting the decoupling point in real time. Unlike the model in [7], this approach is not solely triggered by the release of new orders but also responds to a broader range of dynamic events within the manufacturing process. This continuous adjustment capability allows the model to better capture and react to fluctuations in production flow, machine availability, and other operational variables, thereby providing a more nuanced and efficient means of managing the hybrid MTS-MTO system. The proposed model, therefore, offers a more robust solution for environments characterized by high variability and complexity, ensuring that the production system remains agile and responsive to both customer needs and internal operational dynamics  
Another approach proposed in the literature to support dynamic hybrid MTS-MTO systems concerns the allocation of a set of machines that can be assigned to the MTS or MTO system. The switching of the machines changes the production capacity of one system, reducing the capacity of the other system. [PERSON] et al. [8] considered only the inventory level of the MTS system, while [PERSON] et al. [9] considered a threshold based on inventory levels of MTS production and the waiting orders of MTO products. The solution for the proposed policy is obtained using a Markov process model and a heuristic algorithm with the limited performance measures that these systems can study. [PERSON] and [PERSON] [10] studied the hybrid MTS-MTO from the point of view of production control assigning the orders in MTO or MTS. They used a simulation model to support the decision-making process for MTS or MTO control policies in a case study of a glass tube company. The production planning issue was investigated also by [PERSON] et al. [11], including the carbon emission costs. The allocation of the necessary resource for the production strategy in hybrid production system was studied by [PERSON] and [PERSON] [12]. They considered the order acceptance decisions that led to an increase in the number of totally satisfied orders and profits. A case study of sheet metal plate parts was studied by [PERSON] et al. [13].