IDEAS home Printed from https://ideas.repec.org/a/spr/cejnor/v32y2024i3d10.1007_s10100-023-00891-z.html
   My bibliography  Save this article

A rolling horizon planning approach for short-term demand supply matching

Author

Listed:
  • Raphael Herding

    (University of Hagen
    Westphalian University of Applied Sciences)

  • Lars Mönch

    (University of Hagen)

Abstract

Demand fulfillment and order management are important functions in semiconductor supply chains to interact with customers. In this paper, an iterative short-term demand supply matching (STDSM) algorithm based on mixed-integer linear programming (MILP) is proposed. This approach repromises orders taking into account the finite capacity of the shop floor. Decomposition is used to obtain computationally tractable subproblems. The STDSM approach is applied together with master planning and allocation planning in a rolling horizon setting. A simulation model of a simplified semiconductor supply chain is used for the rolling horizon experiments. The experiments demonstrate that the proposed STDSM scheme outperforms conventional business rule-based heuristics with respect to several delivery performance-related measures and with respect to stability.

Suggested Citation

  • Raphael Herding & Lars Mönch, 2024. "A rolling horizon planning approach for short-term demand supply matching," 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. 32(3), pages 865-896, September.
    • Handle: RePEc:spr:cejnor:v:32:y:2024:i:3:d:10.1007_s10100-023-00891-z
    DOI: 10.1007/s10100-023-00891-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10100-023-00891-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10100-023-00891-z?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. Ari P. J. Vepsalainen & Thomas E. Morton, 1987. "Priority Rules for Job Shops with Weighted Tardiness Costs," Management Science, INFORMS, vol. 33(8), pages 1035-1047, August.
    2. 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.
    3. 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).
    4. 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.
    5. Hubert Missbauer & Reha Uzsoy, 2020. "Production Planning with Capacitated Resources and Congestion," Springer Books, Springer, number 978-1-0716-0354-3, December.
    6. Herbert Meyr, 2009. "Customer segmentation, allocation planning and order promising in make-to-stock production," Springer Books, in: Herbert Meyr & Hans-Otto Günther (ed.), Supply Chain Planning, pages 117-144, Springer.
    7. Toly Chen, 2014. "Strengthening the Competitiveness and Sustainability of a Semiconductor Manufacturer with Cloud Manufacturing," Sustainability, MDPI, vol. 6(1), pages 1-16, January.
    8. Chen-Fu Chien & Stephane Dauzere-Peres & Hans Ehm & John W. Fowler & Zhibin Jiang & Shekar Krishnaswamy & Tae-Eog Lee & Lars Monch & Reha Uzsoy, 2011. "Modelling and analysis of semiconductor manufacturing in a shrinking world: challenges and successes," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 5(3), pages 254-271.
    9. Peter Lyon & R. John Milne & Robert Orzell & Robert Rice, 2001. "Matching Assets with Demand in Supply-Chain Management at IBM Microelectronics," Interfaces, INFORMS, vol. 31(1), pages 108-124, February.
    10. Nadjib Brahimi & Tarik Aouam & El-Houssaine Aghezzaf, 2015. "Integrating order acceptance decisions with flexible due dates in a production planning model with load-dependent lead times," International Journal of Production Research, Taylor & Francis Journals, vol. 53(12), pages 3810-3822, June.
    11. Hubert Missbauer & Reha Uzsoy, 2022. "Order release in production planning and control systems: challenges and opportunities," International Journal of Production Research, Taylor & Francis Journals, vol. 60(1), pages 256-276, January.
    12. Timm Ziarnetzky & Lars Mönch & Reha Uzsoy, 2018. "Rolling horizon, multi-product production planning with chance constraints and forecast evolution for wafer fabs," International Journal of Production Research, Taylor & Francis Journals, vol. 56(18), pages 6112-6134, September.
    13. 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.
    14. Robert C. Leachman & Robert F. Benson & Chihwei Liu & Dale J. Raar, 1996. "IMPReSS: An Automated Production-Planning and Delivery-Quotation System at Harris Corporation—Semiconductor Sector," Interfaces, INFORMS, vol. 26(1), pages 6-37, February.
    15. Meyr, H., 2009. "Customer Segmentation, Allocation Planning and Order Promising in Make-to-Stock Production," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 36061, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    16. Li Chen & Hau L. Lee, 2009. "Information Sharing and Order Variability Control Under a Generalized Demand Model," Management Science, INFORMS, vol. 55(5), pages 781-797, May.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    3. Ghadimi, Foad & Aouam, Tarik & Haeussler, Stefan & Uzsoy, Reha, 2022. "Integrated and hierarchical systems for coordinating order acceptance and release planning," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1277-1289.
    4. Ojha, Divesh & Sahin, Funda & Shockley, Jeff & Sridharan, Sri V., 2019. "Is there a performance tradeoff in managing order fulfillment and the bullwhip effect in supply chains? The role of information sharing and information type," International Journal of Production Economics, Elsevier, vol. 208(C), pages 529-543.
    5. Xiang, Mengyuan & Rossi, Roberto & Martin-Barragan, Belen & Tarim, S. Armagan, 2023. "A mathematical programming-based solution method for the nonstationary inventory problem under correlated demand," European Journal of Operational Research, Elsevier, vol. 304(2), pages 515-524.
    6. Konstantin Kloos & Richard Pibernik & Benedikt Schulte, 2019. "Allocation planning in sales hierarchies with stochastic demand and service-level targets," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 41(4), pages 981-1024, December.
    7. Quante, R. & Fleischmann, M. & Meyr, H., 2009. "A Stochastic Dynamic Programming Approach to Revenue Management in a Make-to-Stock Production System," ERIM Report Series Research in Management ERS-2009-015-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    8. Vogel, Sebastian & Meyr, Herbert, 2015. "Decentral allocation planning in multi-stage customer hierarchies," European Journal of Operational Research, Elsevier, vol. 246(2), pages 462-470.
    9. 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.
    10. Lin, James T. & Chen, Tzu-Li & Lin, Yen-Ting, 2009. "Critical material planning for TFT-LCD production industry," International Journal of Production Economics, Elsevier, vol. 122(2), pages 639-655, December.
    11. Alfred Degbotse & Brian T. Denton & Kenneth Fordyce & R. John Milne & Robert Orzell & Chi-Tai Wang, 2013. "IBM Blends Heuristics and Optimization to Plan Its Semiconductor Supply Chain," Interfaces, INFORMS, vol. 43(2), pages 130-141, April.
    12. Waßmuth, Katrin & Köhler, Charlotte & Agatz, Niels & Fleischmann, Moritz, 2023. "Demand management for attended home delivery—A literature review," European Journal of Operational Research, Elsevier, vol. 311(3), pages 801-815.
    13. Qinyun Li & Stephen M. Disney, 2017. "Revisiting rescheduling: MRP nervousness and the bullwhip effect," International Journal of Production Research, Taylor & Francis Journals, vol. 55(7), pages 1992-2012, April.
    14. Raul Oltra-Badenes & Hermenegildo Gil-Gomez & Jose M Merigo & Daniel Palacios-Marques, 2019. "Methodology and model-based DSS to managing the reallocation of inventory to orders in LHP situations. Application to the ceramics sector," PLOS ONE, Public Library of Science, vol. 14(7), pages 1-19, July.
    15. Baron, Opher & Callen, Jeffrey L. & Segal, Dan, 2023. "Does the bullwhip matter economically? A cross-sectional firm-level analysis," International Journal of Production Economics, Elsevier, vol. 259(C).
    16. Ma, Yungao & Wang, Nengmin & He, Zhengwen & Lu, Jizhou & Liang, Huigang, 2015. "Analysis of the bullwhip effect in two parallel supply chains with interacting price-sensitive demands," European Journal of Operational Research, Elsevier, vol. 243(3), pages 815-825.
    17. Alexandre Forel & Martin Grunow, 2023. "Dynamic stochastic lot sizing with forecast evolution in rolling‐horizon planning," Production and Operations Management, Production and Operations Management Society, vol. 32(2), pages 449-468, February.
    18. Li Chen & Hau L. Lee, 2012. "Bullwhip Effect Measurement and Its Implications," Operations Research, INFORMS, vol. 60(4), pages 771-784, August.
    19. Alidaee, Bahram & Kochenberger, Gary A. & Amini, Mohammad M., 2001. "Greedy solutions of selection and ordering problems," European Journal of Operational Research, Elsevier, vol. 134(1), pages 203-215, October.
    20. S. David Wu & Eui-Seok Byeon & Robert H. Storer, 1999. "A Graph-Theoretic Decomposition of the Job Shop Scheduling Problem to Achieve Scheduling Robustness," Operations Research, INFORMS, vol. 47(1), pages 113-124, 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:cejnor:v:32:y:2024:i:3:d:10.1007_s10100-023-00891-z. 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.