An optimized available-to-promise system for make-to-order company in supply chain environment

An optimized available-to-promise system for make-to-order company in supply chain environment

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Article ID: iaor20063240
Country: United States
Volume: 10
Issue: 4
Publication Date: Dec 2003
Journal: International Journal of Industrial Engineering
Authors: , , ,
Keywords: organization
Abstract:

This paper presents development of an available-to-promise (ATP) system for make-to-order companies in global supply chain environment. ATP activity is simply to give the delivery date promise to customers for their specific orders. Most past researches mainly focus on the shop floor scheduling coupled with simulation in order to calculate the due date of specific order. In this paper, we propose an efficient ATP system in global supply chain environment based on a linear optimization model. The output of suggested system conveys order release, delivery time, and also overall production–distribution schedule useful for future detailed planning in the lower level. The validity of the proposed ATP system was also explored using the simulation runs by comparing to the current practices of companies.

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