IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v135y2005i1p65-8510.1007-s10479-005-6235-7.html
   My bibliography  Save this article

Optimization-Based Available-To-Promise with Multi-Stage Resource Availability

Author

Listed:
  • Zhenying Zhao
  • Michael Ball
  • Masahiro Kotake

Abstract

Increasingly, customer service, rapid response to customer requirements, and flexibility to handle uncertainties in both demand and supply are becoming strategic differentiators in the marketplace. Organizations that want to achieve these benchmarks require sophisticated approaches to conduct order promising and fulfillment, especially in today’s high-mix low-volume production environment. Motivated by these challenges, the Available-to-Promise (ATP) function has migrated from a set of availability records in a Master Production Schedule (MPS) toward an advanced real-time decision support system to enhance decision responsiveness and quality in Assembly To Order (ATO) or Configuration To Order (CTO) environments. Advanced ATP models and systems must directly link customer orders with various forms of available resources, including both material and production capacity. In this paper, we describe a set of enhancements carried out to adapt previously published mixed-integer-programming (MIP) models to the specific requirements posed by an electronic product supply chain within Toshiba Corporation. This model can provide individual order delivery quantities and due dates, together with production schedules, for a batch of customer orders that arrive within a predefined batching interval. The model considers multi-resource availability including manufacturing orders, production capability and production capacity. In addition, the model also takes into account a variety of realistic order promising issues such as order splitting, model decomposition and resource expediting and de-expediting. We conclude this paper with comparison of our model execution results vs. actual historical performance of systems currently in place. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • 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.
    • Handle: RePEc:spr:annopr:v:135:y:2005:i:1:p:65-85:10.1007/s10479-005-6235-7
    DOI: 10.1007/s10479-005-6235-7
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10479-005-6235-7
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10479-005-6235-7?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. Stadtler, Hartmut & Kilger, C., 2000. "Supply chain management and advanced planning: concepts, models, software and case studies," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 4691, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    2. Hau L. Lee & Corey Billington, 1995. "The Evolution of Supply-Chain-Management Models and Practice at Hewlett-Packard," Interfaces, INFORMS, vol. 25(5), pages 42-63, October.
    3. Park, Moon-Won & Kim, Yeong-Dae, 2000. "A branch and bound algorithm for a production scheduling problem in an assembly system under due date constraints," European Journal of Operational Research, Elsevier, vol. 123(3), pages 504-518, June.
    4. Cheng, T. C. E. & Gupta, M. C., 1989. "Survey of scheduling research involving due date determination decisions," European Journal of Operational Research, Elsevier, vol. 38(2), pages 156-166, January.
    5. 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.
    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. 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.
    2. Gössinger, Ralf & Kalkowski, Sonja, 2015. "Robust order promising with anticipated customer response," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 529-542.
    3. 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.
    4. Sameer Prasad & Jason Woldt & Harish Borra & Nezih Altay, 2022. "Migrant supply chain networks: an empirically based typology," Annals of Operations Research, Springer, vol. 319(1), pages 1331-1358, December.
    5. 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.
    6. 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).

    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. 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.
    2. Lerm, Michael & Rollberg, Roland, 2003. "Ellipsenverfahren zur betriebsübergreifenden simultanen Losgrößen- und Bestellmengenplanung," Wirtschaftswissenschaftliche Diskussionspapiere 06/2003, University of Greifswald, Faculty of Law and Economics.
    3. Judit Oláh & Attila Bai & György Karmazin & Péter Balogh & József Popp, 2017. "The Role Played by Trust and Its Effect on the Competiveness of Logistics Service Providers in Hungary," Sustainability, MDPI, vol. 9(12), pages 1-22, December.
    4. Nekoiemehr, Nooshin & Zhang, Guoqing & Selvarajah, Esaignani, 2019. "Due date quotation in a dual-channel supply chain," International Journal of Production Economics, Elsevier, vol. 215(C), pages 102-111.
    5. Raaymakers, W. H. M. & Weijters, A. J. M. M., 2003. "Makespan estimation in batch process industries: A comparison between regression analysis and neural networks," European Journal of Operational Research, Elsevier, vol. 145(1), pages 14-30, February.
    6. Philip Kaminsky & Onur Kaya, 2008. "Scheduling and due‐date quotation in a make‐to‐order supply chain," Naval Research Logistics (NRL), John Wiley & Sons, vol. 55(5), pages 444-458, August.
    7. Johnson, Mark & Mena, Carlos, 2008. "Supply chain management for servitised products: A multi-industry case study," International Journal of Production Economics, Elsevier, vol. 114(1), pages 27-39, July.
    8. Slotnick, Susan A., 2011. "Order acceptance and scheduling: A taxonomy and review," European Journal of Operational Research, Elsevier, vol. 212(1), pages 1-11, July.
    9. Mark Nissen, 2000. "Agent‐based supply chain disintermediation versus re‐intermediation: economic and technological perspectives," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 9(4), pages 237-256, December.
    10. Mustapha Ouhimmou & Sophie D'Amours & Robert Beauregard & Daoud Ait-Kadi & Satyaveer Singh Chauhan, 2009. "Optimization Helps Shermag Gain Competitive Edge," Interfaces, INFORMS, vol. 39(4), pages 329-345, August.
    11. Kolahan, F. & Liang, M., 1998. "An adaptive TS approach to JIT sequencing with variable processing times and sequence-dependent setups," European Journal of Operational Research, Elsevier, vol. 109(1), pages 142-159, August.
    12. Zhi-Long Chen & Nicholas G. Hall, 2010. "The Coordination of Pricing and Scheduling Decisions," Manufacturing & Service Operations Management, INFORMS, vol. 12(1), pages 77-92, April.
    13. Tanja Mlinar & Philippe Chevalier, 2016. "Pooling heterogeneous products for manufacturing environments," 4OR, Springer, vol. 14(2), pages 173-200, June.
    14. 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.
    15. Xia, Yu & Chen, Bintong & Yue, Jinfeng, 2008. "Job sequencing and due date assignment in a single machine shop with uncertain processing times," European Journal of Operational Research, Elsevier, vol. 184(1), pages 63-75, January.
    16. Awi Federgruen & Gur Mosheiov, 1993. "Simultaneous optimization of efficiency and performance balance measures in single‐machine scheduling problems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 40(7), pages 951-970, December.
    17. Pinar Keskinocak & R. Ravi & Sridhar Tayur, 2001. "Scheduling and Reliable Lead-Time Quotation for Orders with Availability Intervals and Lead-Time Sensitive Revenues," Management Science, INFORMS, vol. 47(2), pages 264-279, February.
    18. Bernard Dickman & Yonah Wilamowsky & Sheldon Epstein, 2001. "Multiple common due dates," Naval Research Logistics (NRL), John Wiley & Sons, vol. 48(4), pages 293-298, June.
    19. Holten, Roland, 2002. "Metainformationssysteme: Backbone der Anwendungssystemkopplung," Arbeitsberichte des Instituts für Wirtschaftsinformatik 89, University of Münster, Department of Information Systems.
    20. Zhi-Long Chen, 1997. "Scheduling with batch setup times and earliness-tardiness penalties," European Journal of Operational Research, Elsevier, vol. 96(3), pages 518-537, 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:spr:annopr:v:135:y:2005:i:1:p:65-85:10.1007/s10479-005-6235-7. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.