Dynamic quotation of leadtime and price for a Make-To-Order system with multiple customer classes and perfect information on customer preferences

2017 ◽  
Vol 258 (1) ◽  
pp. 334-342 ◽  
Author(s):  
Jiejian Feng ◽  
Michael Zhang
Author(s):  
Shanshan Li ◽  
Yong He ◽  
Li Zhou

AbstractThis paper considers a make-to-order system where production gets disrupted due to a random supply failure. To avoid potential stock-out risk and responding price increase during disruption, customers might decide to stockpile extra units for future consumption. We investigate the contingent sourcing strategy for the manufacturer to cope with the disruption. To this end, we first discuss the optimal post-disruption stockpiling decision for customers. In view of expected disruption duration, price rise, and inventory holding cost, three types of stockpiling behavior are analytically provided for the customers: non-stockpiling, gradual stockpiling, and instantaneous stockpiling. Next, a model is formulated to optimize the joint decision of contingent sourcing time and quantity, with the objective of maximizing profit expectation. Finally, by conducting numerical analysis, we generate further insights into the role of relative factors and provide specific managerial suggestions on how to adapt dynamic contingent sourcing strategies to alleviate different disruptions, under different market environments and customer behaviors.


2012 ◽  
Vol 45 (6) ◽  
pp. 1493-1498 ◽  
Author(s):  
E. De Cuypere ◽  
K. De Turck ◽  
D. Fiems

2011 ◽  
Vol 209 (1) ◽  
pp. 159-178 ◽  
Author(s):  
Nasuh C. Buyukkaramikli ◽  
J. Will M. Bertrand ◽  
Henny P. G. van Ooijen

2010 ◽  
Vol 443 ◽  
pp. 748-753 ◽  
Author(s):  
Hsien Ming Chang ◽  
Chi Kong Huang ◽  
Chau Chen Torng

Aerospace industry is a value-added and technology integrated industry. Due to the investment of aerospace industry is high and the pay back period is long, the type of aircraft production belongs to make-to-order system. Business flows and process flows are complex inside the aerospace manufacturing industry. Quality, cost, delivery and flexibility are the fundamental requirements of aerospace manufacturing suppliers. The aerospace manufacturing suppliers have to coordinate those fundamental requirements and construct the model of production system with Continuous Improvement in the competitive market. This study integrates the concepts of Six Sigma, Theory of Constraint, Lean Production and Value Engineering, and allies the functional groups and system resources inside the aerospace manufacturing suppliers. Then develop the Production Improvement Model with Continuous Improvement to allocate the resources to construct a production system. Thereby, the aerospace manufacturing suppliers can strengthen the competitiveness in the dynamic aerospace market.


2018 ◽  
Vol 154 ◽  
pp. 01064 ◽  
Author(s):  
Sri Indrawati ◽  
Mentari Endah Pratiwi ◽  
Sunaryo ◽  
Abdullah ‘Azzam

The changeover time is a factor that greatly affects the lean production implementation in industry with make to order system. Large product variations and unpredictable quantity of orders will trigger some kind of production wastes if changeover time is done in a longer time. One industry with make to order system is printing industry. In general, to produce several types of products such as books takes quite a long time because of long production changeover process. The general problem faced is the delay in book’s production completion. Based on this problem, changeover time reduction is needed to overcome the delay of book’s production completion using single minute exchanges of dies (SMED) method. The SMED method is the method that separates the changeover activity into two, i.e. internal setup and external setup. The research shows that changeover time for printing workstation is 18 minutes 29 seconds, which consists of internal setup activities 14 minutes 37 seconds and external setup 4 minutes 33 seconds. By converting 45% of the internal setup activity into an external setup, then the setup time can be reduced. The initial setup activities performed when machine is stop, now can be done when the machine is running. In addition, a changeover process improvement also done using 5S method in workstation tools area so the internal setup time is reduced 46% becomes 7 minutes 59 seconds. Under these conditions, the printing industry can increase production by 2%.


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