Title: A resource-constrained profit-based dynamic order management model

Authors: Elias T. Kirche, Rajesh Srivastava

Addresses: College of Business, Florida Gulf Coast University, 10501 FGCU Blvd. S., Fort Myers, FL 33965-6565, USA. ' College of Business, Florida Gulf Coast University, 10501 FGCU Blvd. S., Fort Myers, FL 33965-6565, USA

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.

Keywords: 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.

DOI: 10.1504/IJCAT.2007.017239

International Journal of Computer Applications in Technology, 2007 Vol.30 No.4, pp.273 - 280

Published online: 19 Feb 2008 *

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