Decentral allocation planning in multi-stage customer hierarchies

Vogel, Sebastian; Meyr, Herbert

doi:10.1016/j.ejor.2015.05.009

Cited by 15 publications

(2 citation statements)

References 19 publications

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“…Since customers usually require an immediate response, real-time order promising approaches are more common in industrial environments. Common allocation planning approaches use rules (Cederborg and Rudberg 2009;Vogel and Meyr 2015;Kilger and Meyr 2015) or optimisation models based on linear programming (Ervolina et al 2009;Meyr 2009;Chien, Wu, and Wu 2013;Chen and Dong 2014;Chiang and Hsu 2014;Lebreton 2015;Framinan and Perez-Gonzalez 2016;Cano-Belmán and Meyr 2019). As differences between ADI and final order quantities lead to inefficiencies in the supply allocation, recent work has also specifically addressed the modelling of release mechanisms and supply reallocation approaches (e.g.…”

Section: Related Literaturementioning

confidence: 99%

A contract portfolio perspective on the role of customer order lead times in demand fulfilment processes with supply shortage

Seitz

Akkerman

Grunow

2021

International Journal of Production Research

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When demands exceed capacities, suppliers allocate available supply to customers based on customer importance and advance demand information. The accuracy of advance demand information interacts with the length of customer order lead times and influences overall customer service levels. In this paper, we analyse industrial contract portfolios with customer-specific terms in order to derive insights for contract portfolio management and the design of demand fulfilment processes. For this purpose, we develop a framework for analysis of contract portfolios capturing the dynamics of industrial planning processes. The framework is applied to portfolios from the semiconductor sector. Our numerical analysis shows that, in order to improve service levels, demand fulfilment processes and contract portfolio management must especially take into account the length of order lead times and the accuracy of advance demand information. Even though suppliers often prefer long order lead times, our analysis shows that demand fulfilment performance is not primarily determined by the absolute length of the order lead times but by the presence of a negative correlation with the accuracy of advance demand information in the entire contract portfolio. Consequently, these factors require increased attention in the management of contract portfolios and in the negotiation of individual contracts.

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Section: Related Literaturementioning

confidence: 99%

A contract portfolio perspective on the role of customer order lead times in demand fulfilment processes with supply shortage

Seitz

Akkerman

Grunow

2021

International Journal of Production Research

View full text Add to dashboard Cite

show abstract

“…Advanced Planning Systems offer basic solution algorithms for this problem (see, e.g., [13]). More sophisticated approaches combine allocation decisions with pricing (e.g., [14]) and consider multi-level customer hierarchies ( [15]). [16] study the allocation problem under service-level contracts.…”

Section: Literature Reviewmentioning

confidence: 99%