| Report ID: | 06-06-4012-18 |
| Initial Submission Date: | 2006-06-04 |
| Title: | Dynamic Order Promising: Real-time ATP |
| Summary: | In order to satisfy customer demands despite unique specifications or schedule constraints, manufacturers have realised the critical need for real-time available-to-promise (ATP). In this paper, we present a model for real-time order promising in a mixed make-to-order, maketo-stock manufacturing environment. Each fulfillment source is considered as a separate module. Consistent with the real-time nature of the problem, this model considers a snapshot view of the enterprise at the moment the customer order enters the system. Relevant values from potential fulfillment sources are passed to the ATP optimization engine. Following an instantaneous decision to accept or reject the order, the newly pegged resources are updated in the system. The flexibility in this modular structure allows the model to adapt to the most fragmented IT system or leverage the benefits of a highly integrated ERP system. We found that order acceptance levels and costs are most sensitive to capacity utilization. Other factors that showed significant effects in our real-time ATP environment were demand variability, number or orders per day and the magnitude of these orders. |
| Authors: | Robinson, Anne G.; Carlson, Robert C. |
| Contact email: | anne.robinson@stanford.edu |
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