A resource-constrained profit-based dynamic order management model. (21st February 2008)

• Record Type: Journal Article
• Authors: Kirche, Elias T.; Srivastava, Rajesh
• Is Part Of: International journal of computer applications technology. Volume 30:Number 4(2007)
• Page Start: 273
• Page End: 280
• Publication Date: 2008-02-21
• Subjects: demand management -- production planning -- decision models -- resource constraints -- dynamic order management -- available-to-promise -- ATP -- capacity -- profitability -- decision support systems -- DSS -- resource planning -- two-level supply chains -- profitable-to-promise; Technology -- Data processing -- Periodicals; 620.00285
• Languages: English
• ISSNs: 0952-8091

Abstract

This research extends the Available-to-Promise (ATP) concept to include both capacity and profitability considerations in a two-level supply chain. The model in study is referred in practice as Profitable-to-Promise (PTP) logic. It provides a decision support system for companies to determine order profitability in real time environment, and allows for order promising and critical resource planning. The efficiency of the PTP model is investigated by comparing it with a capacity decision rule with customer specified due date. Results suggest that capacity loadings influence the choice of model, with the PTP model preferred at higher capacity loadings.