IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-540-93775-3_6.html
   My bibliography  Save this book chapter

Managing product availability in an assemble-to-order supply chain with multiple customer segments

In: Supply Chain Planning

Author

Listed:
  • Thomas R. Ervolina

    (IBM T.J. Watson Research Center)

  • Markus Ettl

    (IBM T.J. Watson Research Center)

  • Young M. Lee

    (IBM T.J. Watson Research Center)

  • Daniel J. Peters

    (Real Estate Operations)

Abstract

In this article, we propose a novel availability management process called Available-to-Sell (ATS) that incorporates demand shaping and profitable demand response to drive better supply chain efficiency. The proposed process aims at finding marketable product alternatives in a quest to maintain a financially viable and profitable product portfolio, and to avoid costly inventory overages and shortages. The process is directly supported by a mathematical optimization model that enables on demand up-selling, alternative-selling and down-selling to better integrate the supply chain horizontally, connecting the interaction of customers, business partners and sales teams to procurement and manufacturing capabilities of a firm. We outline the business requirements for incorporating such a process into supply chain operations, and highlight the advantages of ATS through simulations with realistic production data in a computer manufacturing environment. The models featured in this paper have contributed to substantial business improvements in industry-size supply chains, including over $100M of inventory reduction in IBM's server computer supply chain.

Suggested Citation

  • Thomas R. Ervolina & Markus Ettl & Young M. Lee & Daniel J. Peters, 2009. "Managing product availability in an assemble-to-order supply chain with multiple customer segments," Springer Books, in: Herbert Meyr & Hans-Otto Günther (ed.), Supply Chain Planning, pages 145-168, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-93775-3_6
    DOI: 10.1007/978-3-540-93775-3_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

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


    Cited by:

    1. Matzke, Andreas & Volling, Thomas & Spengler, Thomas S., 2016. "Upgrade auctions in build-to-order manufacturing with loss-averse customers," European Journal of Operational Research, Elsevier, vol. 250(2), pages 470-479.
    2. 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).

    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:sprchp:978-3-540-93775-3_6. 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.

    We have no bibliographic references for this item. You can help adding them by using 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.