Coordinated Contract Decisions in a Make‐to‐Order Manufacturing Supply Chain: A Stochastic Programming Approach. (24th October 2012)
- Record Type:
- Journal Article
- Title:
- Coordinated Contract Decisions in a Make‐to‐Order Manufacturing Supply Chain: A Stochastic Programming Approach. (24th October 2012)
- Main Title:
- Coordinated Contract Decisions in a Make‐to‐Order Manufacturing Supply Chain: A Stochastic Programming Approach
- Authors:
- Feng, Yan
Martel, Alain
D'Amours, Sophie
Beauregard, Robert - Abstract:
- Abstract : One of the important objectives of supply chain S&OP (Sales and Operations Planning) is the profitable alignment of customer demand with supply chain capabilities through the coordinated planning of sales, production, distribution, and procurement. In the make‐to‐order manufacturing context considered in this paper, sales plans cover both contract and spot sales, and procurement plans require the selection of supplier contracts. S&OP decisions also involve the allocation of capacity to support sales plans. This article studies the coordinated contract selection and capacity allocation problem, in a three‐tier manufacturing supply chain, with the objective to maximize the manufacturer's profitability. Using a modeling approach based on stochastic programming with recourse, we show how these S&OP decisions can be made taking into account economic, market, supply, and system uncertainties. The research is based on a real business case in the Oriented Strand Board (OSB) industry. The computational results show that the proposed approach provides realistic and robust solutions. For the case considered, the planning method elaborated yields significant performance improvements over the solutions obtained from the mixed integer programming model previously suggested for S&OP.
- Is Part Of:
- Production and operations management. Volume 22:Number 3(2013:May/Jun.)
- Journal:
- Production and operations management
- Issue:
- Volume 22:Number 3(2013:May/Jun.)
- Issue Display:
- Volume 22, Issue 3 (2013)
- Year:
- 2013
- Volume:
- 22
- Issue:
- 3
- Issue Sort Value:
- 2013-0022-0003-0000
- Page Start:
- 642
- Page End:
- 660
- Publication Date:
- 2012-10-24
- Subjects:
- contract design -- supply chain coordination -- make‐to‐order manufacturing -- stochastic programming -- sample average approximation
Production management -- Periodicals
658.505 - Journal URLs:
- http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1937-5956 ↗
http://www.poms.org/journal ↗
http://www3.interscience.wiley.com/journal/121568272/home ↗
http://onlinelibrary.wiley.com/ ↗
http://www.umi.com/pqdauto/ ↗ - DOI:
- 10.1111/j.1937-5956.2012.01385.x ↗
- Languages:
- English
- ISSNs:
- 1059-1478
- Deposit Type:
- Legaldeposit
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library DSC - 6853.076600
British Library DSC - BLDSS-3PM
British Library STI - ELD Digital store - Ingest File:
- 482.xml