A decision support tool for the order promising process with product homogeneity requirements in hybrid Make-To-Stock and Make-To-Order environments. Application to a ceramic tile company. (August 2018)

• Record Type: Journal Article
• Authors: Alemany, MME; Ortiz, A.; Fuertes-Miquel, Vicente S.
• Is Part Of: Computers & industrial engineering. Volume 122(2018)
• Page Start: 219
• Page End: 234
• Publication Date: 2018-08
• Subjects: Available-to-promise -- Capable-to-promise -- Order promising process -- Customer homogeneity requirement -- Hybrid MTS-MTO -- Mixed integer linear programming; Engineering -- Data processing -- Periodicals; Industrial engineering -- Periodicals; 620.00285
• DOI: 10.1016/j.cie.2018.05.040
• Languages: English
• ISSNs: 0360-8352

Abstract

Highlights: A novel MILP model for promising orders with homogeneity requirements is proposed. Homogeneous Available-To-Promise and Capable-To-Promise are simultaneously checked. Master planning and order promising are more closely integrated into a single model. Different consumption rules of homogeneous Available-To-Promise are implemented. Results show that in certain scenarios, consumption rules improve the global profits. Abstract: Order promising in manufacturing systems that produce non-uniform units of the same finished good becomes a more complex process when customer orders need to be served with homogeneous units. To facilitate this task, we propose a mathematical model-based decision tool to support the order promising process according to product homogeneity requirements in hybrid Make-To-Stock (MTS) and Make-To-Order (MTO) contexts. In these manufacturing environments, the comparison of Available-To-Promise (ATP) and/or Capable-To-Promise (CTP) quantities with homogeneous ones ordered by customers is necessary during the order commitment. To properly deal with customers' product uniformity requirements, different ATP consumption rules are implemented by defining a novel objective function. CTP modelling in these systems also entails having to address new aspects, such as estimating future homogeneous quantities in additional lots to the master plan, accomplishing minimum lot sizes and saving in setups when programming new lots. By including CTP in the order promising model, a closer integration with the master production schedule is achieved. The resulting mathematical model was applied to a ceramic tile company in different supply scenarios and execution modes, and at several availability levels (ATP and ATP&CTP). The results validate model performance and provide insights into the impact of ATP consumption rules on the profits made from committed customer orders in different scenarios for the specific ceramic tile company.