A new decision-making structure for the order entry stage in make-to-order environments

A new decision-making structure for the order entry stage in make-to-order environments

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Article ID: iaor2009178
Country: Netherlands
Volume: 111
Issue: 2
Start Page Number: 351
End Page Number: 367
Publication Date: Jan 2008
Journal: International Journal of Production Economics
Authors: , , , ,
Keywords: programming: mathematical
Abstract:

In this paper, we propose a new comprehensive decision-making structure for the order entry stage in make-to-order (MTO) environments. The aim of the proposed structure is to manage the arriving orders so that the MTO system just proceeds to produce those arriving orders which are feasible and profitable for the system. The appropriate decisions on the arriving orders are taken based on two criteria including price and delivery time. The arriving orders have either fixed or negotiable delivery times. The proposed structure has five major steps. At the two first steps, the new arriving orders either are rejected or appropriate decisions to meet their delivery time are made. At the next step, the optimal prices along with delivery times (if negotiable) of non-rejected orders are determined by a mixed-integer programming model.

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