IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v170y2015ipbp529-542.html
   My bibliography  Save this article

Robust order promising with anticipated customer response

Author

Listed:
  • Gössinger, Ralf
  • Kalkowski, Sonja

Abstract

One important way to differentiate from competitors is to promise reliable delivery dates. Therefore, order promising not only aims at maximizing short-term profits, but also at achieving an acceptable degree of robustness. In capable-to-promise (CTP) approaches proposed for answering to customer order inquiries the order- and resource-related uncertainty is taken into account by several preventive measures. Up until now, the effectiveness of these measures has been proven in isolated analyses. Although they are directed to different uncertainty types it cannot be concluded that the observed impacts unfold independently. In this paper a CTP approach is presented and analyzed for the case of order- and resource-related uncertainty. Robustness is achieved by the preventive adaptation measures of capacity nesting, providing safety capacity and proposal of alternative delivery dates. Planning occurs at two stages: (1) order acceptance according to the order specifications requested by the customer or provisionally order rejection, and (2) proposal of alternative delivery dates for provisionally rejected orders. As a major extension to the current literature customers׳ response on alternative delivery dates is anticipated and considered at this stage. In contrast to currently existing approaches the suitability of this new approach, the impacts of preventive measures on profit and robustness and the interactions between the measures are systematically evaluated in a numerical analysis.

Suggested Citation

  • Gössinger, Ralf & Kalkowski, Sonja, 2015. "Robust order promising with anticipated customer response," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 529-542.
  • Handle: RePEc:eee:proeco:v:170:y:2015:i:pb:p:529-542
    DOI: 10.1016/j.ijpe.2015.05.026
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527315001784
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ijpe.2015.05.026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Anne G. Robinson & Robert C. Carlson, 2007. "Dynamic order promising: real-time ATP," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 3(3), pages 283-301.
    2. Chiang, David Ming-Huang & Wu, Andy Wei-Di, 2011. "Discrete-order admission ATP model with joint effect of margin and order size in a MTO environment," International Journal of Production Economics, Elsevier, vol. 133(2), pages 761-775, October.
    3. Afshin Mansouri, S. & Gallear, David & Askariazad, Mohammad H., 2012. "Decision support for build-to-order supply chain management through multiobjective optimization," International Journal of Production Economics, Elsevier, vol. 135(1), pages 24-36.
    4. Zhenying Zhao & Michael Ball & Masahiro Kotake, 2005. "Optimization-Based Available-To-Promise with Multi-Stage Resource Availability," Annals of Operations Research, Springer, vol. 135(1), pages 65-85, March.
    5. A. Charnes & W. W. Cooper, 1959. "Chance-Constrained Programming," Management Science, INFORMS, vol. 6(1), pages 73-79, October.
    6. King, Malcolm & Mercer, Alan, 1988. "Recurrent competitive bidding," European Journal of Operational Research, Elsevier, vol. 33(1), pages 2-16, January.
    7. Kingsman, Brian & Worden, Lee & Hendry, Linda & Mercer, Alan & Wilson, Elaine, 1993. "Integrating marketing and production planning in make-to-order companies," International Journal of Production Economics, Elsevier, vol. 30(1), pages 53-66, July.
    8. Renna, Paolo & Argoneto, Pierluigi, 2010. "Production planning and automated negotiation for SMEs: An agent based e-procurement application," International Journal of Production Economics, Elsevier, vol. 127(1), pages 73-84, September.
    9. Richard Engelbrecht-Wiggans, 1980. "State of the Art---Auctions and Bidding Models: A Survey," Management Science, INFORMS, vol. 26(2), pages 119-142, February.
    10. Robert M. Stark & Michael H. Rothkopf, 1979. "Competitive Bidding: A Comprehensive Bibliography," Operations Research, INFORMS, vol. 27(2), pages 364-390, April.
    11. Long Gao & Susan H. Xu & Michael O. Ball, 2012. "Managing an Available-to-Promise Assembly System with Dynamic Short-Term Pseudo-Order Forecast," Management Science, INFORMS, vol. 58(4), pages 770-790, April.
    12. Pibernik, Richard, 2005. "Advanced available-to-promise: Classification, selected methods and requirements for operations and inventory management," International Journal of Production Economics, Elsevier, vol. 93(1), pages 239-252, January.
    13. Roy, Bernard, 2010. "Robustness in operational research and decision aiding: A multi-faceted issue," European Journal of Operational Research, Elsevier, vol. 200(3), pages 629-638, February.
    14. John M. Mulvey & Robert J. Vanderbei & Stavros A. Zenios, 1995. "Robust Optimization of Large-Scale Systems," Operations Research, INFORMS, vol. 43(2), pages 264-281, April.
    15. Chien-Yu Chen & Zhen-Ying Zhao & Michael O. Ball, 2001. "Quantity and Due Date Quoting Available to Promise," Information Systems Frontiers, Springer, vol. 3(4), pages 477-488, December.
    16. Kimms, A, 1998. "Stability Measures for Rolling Schedules with Applications to Capacity Expansion Planning, Master Production Scheduling, and Lot Sizing," Omega, Elsevier, vol. 26(3), pages 355-366, June.
    17. Matthias Thürer & Mark Stevenson & Cristovao Silva & Martin J. Land & Lawrence D. Fredendall & Steven A. Melnyk, 2014. "Lean Control for Make-to-Order Companies: Integrating Customer Enquiry Management and Order Release," Production and Operations Management, Production and Operations Management Society, vol. 23(3), pages 463-476, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fleischmann, Moritz & Kloos, Konstantin & Nouri, Maryam & Pibernik, Richard, 2020. "Single-period stochastic demand fulfillment in customer hierarchies," European Journal of Operational Research, Elsevier, vol. 286(1), pages 250-266.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Seitz, Alexander & Grunow, Martin & Akkerman, Renzo, 2020. "Data driven supply allocation to individual customers considering forecast bias," International Journal of Production Economics, Elsevier, vol. 227(C).
    2. Foad Mahdavi Pajouh & Dahai Xing & Yingjue Zhou & Sharethram Hariharan & Balabhaskar Balasundaram & Tieming Liu & Ramesh Sharda, 2013. "A Specialty Steel Bar Company Uses Analytics to Determine Available-to-Promise Dates," Interfaces, INFORMS, vol. 43(6), pages 503-517, December.
    3. Yuichi Takano & Nobuaki Ishii & Masaaki Muraki, 2017. "Multi-period resource allocation for estimating project costs in competitive bidding," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 25(2), pages 303-323, June.
    4. Alexander Seitz & Hans Ehm & Renzo Akkerman & Sarah Osman, 2016. "A robust supply chain planning framework for revenue management in the semiconductor industry," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 15(6), pages 523-533, December.
    5. Alarcón, F. & Alemany, M.M.E. & Ortiz, A., 2009. "Conceptual framework for the characterization of the order promising process in a collaborative selling network context," International Journal of Production Economics, Elsevier, vol. 120(1), pages 100-114, July.
    6. Schönlein, Michael & Makuschewitz, Thomas & Wirth, Fabian & Scholz-Reiter, Bernd, 2013. "Measurement and optimization of robust stability of multiclass queueing networks: Applications in dynamic supply chains," European Journal of Operational Research, Elsevier, vol. 229(1), pages 179-189.
    7. Antonio G. Martín & Manuel Díaz-Madroñero & Josefa Mula, 2020. "Master production schedule using robust optimization approaches in an automobile second-tier supplier," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 28(1), pages 143-166, March.
    8. Alexander Engau, 2017. "Proper Efficiency and Tradeoffs in Multiple Criteria and Stochastic Optimization," Mathematics of Operations Research, INFORMS, vol. 42(1), pages 119-134, January.
    9. Kalaı¨, Rim & Lamboray, Claude & Vanderpooten, Daniel, 2012. "Lexicographic α-robustness: An alternative to min–max criteria," European Journal of Operational Research, Elsevier, vol. 220(3), pages 722-728.
    10. Tsai, Kune-muh & Wang, Shan-chi, 2009. "Multi-site available-to-promise modeling for assemble-to-order manufacturing: An illustration on TFT-LCD manufacturing," International Journal of Production Economics, Elsevier, vol. 117(1), pages 174-184, January.
    11. Mavrotas, George & Figueira, José Rui & Siskos, Eleftherios, 2015. "Robustness analysis methodology for multi-objective combinatorial optimization problems and application to project selection," Omega, Elsevier, vol. 52(C), pages 142-155.
    12. Thammakoranonta, Nithinant & Radhakrishnan, Abirami & Davis, Steve & Peck, John C. & Miller, Janis L., 2008. "A protocol for the order commitment decision in a supply network," International Journal of Production Economics, Elsevier, vol. 115(2), pages 515-527, October.
    13. Ben Ali, M. & D’Amours, S. & Gaudreault, J. & Carle, M-A., 2018. "Configuration and evaluation of an integrated demand management process using a space-filling design and Kriging metamodeling," Operations Research Perspectives, Elsevier, vol. 5(C), pages 45-58.
    14. Venkatadri, Uday & Srinivasan, Ashok & Montreuil, Benoit & Saraswat, Ashish, 2006. "Optimization-based decision support for order promising in supply chain networks," International Journal of Production Economics, Elsevier, vol. 103(1), pages 117-130, September.
    15. Marla, Lavanya & Rikun, Alexander & Stauffer, Gautier & Pratsini, Eleni, 2020. "Robust modeling and planning: Insights from three industrial applications," Operations Research Perspectives, Elsevier, vol. 7(C).
    16. Yanyan Wang & Baiqing Sun, 2022. "Multiperiod optimal emergency material allocation considering road network damage and risk under uncertain conditions," Operational Research, Springer, vol. 22(3), pages 2173-2208, July.
    17. Chiang, David Ming-Huang & Wu, Andy Wei-Di, 2011. "Discrete-order admission ATP model with joint effect of margin and order size in a MTO environment," International Journal of Production Economics, Elsevier, vol. 133(2), pages 761-775, October.
    18. Afshin Mansouri, S. & Gallear, David & Askariazad, Mohammad H., 2012. "Decision support for build-to-order supply chain management through multiobjective optimization," International Journal of Production Economics, Elsevier, vol. 135(1), pages 24-36.
    19. Kozloff, Keith & Taff, Steven J., 1990. "Perspectives On Competitive Bidding: Retirement Of Environmentally Sensitive Farmland," Staff Papers 13822, University of Minnesota, Department of Applied Economics.
    20. Alexander Seitz & Martin Grunow, 2017. "Increasing accuracy and robustness of order promises," International Journal of Production Research, Taylor & Francis Journals, vol. 55(3), pages 656-670, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:170:y:2015:i:pb:p:529-542. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.