Abstract
This paper explores a dynamic order acceptance policy of firms in a decentralized supply chain (SC) to improve the profits of an SC by using the machine learning method. The dynamic arrival and due date orders in SC were divided into three types according to the profit that the SC can obtain. Two echelons of the SC, in which a supplier that cooperate with other firms in SC will receive orders in and out of the SC, are employed in this study. Capturing four order characteristics in make-to-order SC, we examine whether this model can make a higher profit by using a simulation model of Support Vector Machines (SVMs) rather than First Come First Serve (FCFS) and Artificial Neural Network (ANN). The experimental results indicate that SVMs is an efficient tool for firms in a dynamic SC to improve the performance of the SC. A numerical example is used to validate the results.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Guerrero, H. H., & Kern, G. M. (1988). How to more effectively accept and refuse orders. Production and Inventory Management Journal, 29(4), 59.
Lee, C., Piramuthu, S., et al. (1997). Job shop scheduling with a genetic algorithm and machine learning. International Journal of Production Research, 35(4), 1171–1191.
Zhao, W., & Stankovic, J. A. (1989). Performance analysis of FCFS and improved FCFS scheduling algorithms for dynamic real-time computer systems. In Proceedings. Real-time systems symposium (pp. 156–165). IEEE.
Wang, J., Yang, J., et al. (1994). Multicriteria order acceptance decision support in over-demanded job shops: A neural network approach. Mathematical and Computer Modelling, 19(5), 1–19.
Miller, B. L. (1969). A queueing reward system with several customer classes. Management Science, 16(3), 234–245.
Holweg, M., & Bicheno, J. (2002). Supply chain simulation - a tool for education, enhancement and endeavour. International Journal of Production Economics, 78(2), 163–175.
Lee, Y. H., Cho, M. K., et al. (2002). Supply chain simulation with discrete--continuous combined modeling. Computers & Industrial Engineering, 43(1), 375–392.
Petrovic, D. (2001). Simulation of supply chain behaviour and performance in an uncertain environment. International Journal of Production Economics, 71(1), 429–438.
Hans, A. (1994). Towards a better understanding of order acceptance. International Journal of Production Economics, 37(1), 139–152.
Ono, K., & Jones, C. (1973). A heuristic approach to acceptance rules in integrated scheduling systems. Journal of Operations Research Society of Japan, 16(1), 36–58.
Ten Kate, H. A. E. (1995). Order acceptance and production control. Princeton, NJ: Labyrint Publication.
Stern, H. I., & Avivi, Z. (1990). The selection and scheduling of textile orders with due dates. European Journal of Operational Research, 44(1), 11–16.
Slotnick, S. A., & Morton, T. E. (2007). Order acceptance with weighted tardiness. Computers & Operations Research, 34(10), 3029–3042.
Barut, M., & Sridharan, V. (2005). Revenue management in order-driven production systems. Decision Sciences, 36(2), 287–316.
Ivanescu, C. V., Fransoo, J. C., et al. (2002). Makespan estimation and order acceptance in batch process industries when processing times are uncertain. OR Spectrum, 24(4), 467–495.
Raaymakers, W. H., Bertrand, J. W. M., et al. (2000). Using aggregate estimation models for order acceptance in a decentralized production control structure for batch chemical manufacturing. IIE Transactions, 32(10), 989–998.
Lei, D., & Guo, X. (2015). A parallel neighborhood search for order acceptance and scheduling in flow shop environment. International Journal of Production Economics, 165, 12–18.
Nobibon, F. T., & Leus, R. (2011). Exact algorithms for a generalization of the order acceptance and scheduling problem in a single-machine environment. Computers & Operations Research, 38(1), 367–378.
Charnsirisakskul, K., Griffin, P. M., et al. (2004). Order selection and scheduling with leadtime flexibility. IIE Transactions, 36(7), 697–707.
Charnsirisakskul, K., Griffin, P. M., et al. (2006). Pricing and scheduling decisions with leadtime flexibility. European Journal of Operational Research, 171(1), 153–169.
Og, C., Salman, F. S., et al. (2010). Order acceptance and scheduling decisions in make-to-order systems. International Journal of Production Economics, 125(1), 200–211.
Rom, W. O., & Slotnick, S. A. (2009). Order acceptance using genetic algorithms. Computers & Operations Research, 36(6), 1758–1767.
Rahman, H. F., Sarker, R., et al. (2015). A real-time order acceptance and scheduling approach for permutation flow shop problems. European Journal of Operational Research, 247(2), 488–503.
Chen, C., Yang, Z., et al. (2014). Diversity controlling genetic algorithm for order acceptance and scheduling problem. Mathematical Problems in Engineering, 2014, 367152.
Park, J., Nguyen, S., et al. (2014). Enhancing heuristics for order acceptance and scheduling using genetic programming. In G. Dick et al. (Eds.), Simulated evolution and learning. SEAL 2014 (Lecture notes in computer science) (Vol. 8886, pp. 723–734). Cham: Springer.
Wester, F., Wijngaard, J., et al. (1992). Order acceptance strategies in a production-to-order environment with setup times and due-dates. The International Journal of Production Research, 30(6), 1313–1326.
Gordon, V. S., & Strusevich, V. A. (2009). Single machine scheduling and due date assignment with positionally dependent processing times. European Journal of Operational Research, 198(1), 57–62.
Moreira, M. R. A. R., & Alves, R. A. F. (2009). A methodology for planning and controlling workload in a job-shop: A four-way decision-making problem. International Journal of Production Research, 47(10), 2805–2821.
Rogers, P., & Nandi, A. (2007). Judicious order acceptance and order release in make-to-order manufacturing systems. Production Planning & Control, 18(7), 610–625.
Yang, W., & Fung, R. Y. (2014). Stochastic optimization model for order acceptance with multiple demand classes and uncertain demand/supply. Engineering Optimization, 46(6), 824–841.
Aouam, T., & Brahimi, N. (2013). Integrated production planning and order acceptance under uncertainty: A robust optimization approach. European Journal of Operational Research, 228(3), 504–515.
Kilic, O. A., van Donk, D. P., et al. (2010). Order acceptance in food processing systems with random raw material requirements. OR Spectrum, 32(4), 905–925.
Boser, B. E., Guyon, I. M., et al. (1992). A training algorithm for optimal margin classifiers (pp. 144–152). New York: ACM.
Vapnik, V. (1995). The nature of statistical learning theory (pp. 15–24). New York: Springer.
Vapnik, V. (2013). The nature of statistical learning theory (pp. 78–89). New York: Springer.
Amari, S., & Wu, S. (1999). Improving support vector machine classifiers by modifying kernel functions. Neural Networks, 12(6), 783–789.
Carbonneau, R., Laframboise, K., et al. (2008). Application of machine learning techniques for supply chain demand forecasting. European Journal of Operational Research, 184(3), 1140–1154.
Caruana, R., & Niculescu-Mizil, A. (2006). An empirical comparison of supervised learning algorithms (pp. 161–168). New York: ACM.
Meyer, D., Leisch, F., et al. (2003). The support vector machine under test. Neurocomputing, 55(1), 169–186.
Nagurney, A., & Dong, J. (2002). Supernetworks: Decision-making for the information age (pp. 33–48). Cheltenham: Edward Elgar Publishing.
Robinson, B., & Lakhani, C. (1975). Dynamic price models for new-product planning. Management Science, 21(10), 1113–1122.
Zhang, D. (2006). A network economic model for supply chain versus supply chain competition. Omega, 34(3), 283–295.
Chang, C., & Lin, C. (2011). LIBSVM: A library for support vector machines. ACM Transactions on Intelligent Systems and Technology (TIST), 2(3), 27.
Hsu, C., Chang, C., & Lin, C. (2003). A practical guide to support vector classification (Technical Report, pp. 1–12). Taipei: Department of Computer Science and Information Engineering, University of National Taiwan.
Acknowledgments
This research was financially supported by a project grant from the Discovery Grant from the Natural Science and Engineering Research Council of Canada (NSERC) and the Humanities and Social Sciences of Ministry of Education Planning Fund (No: 16YJC630085) in China.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Appendix
Appendix
Rights and permissions
Copyright information
© 2020 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Ma, J., Tu, Y., Feng, D. (2020). Order Acceptance Policy for Make-To-Order Supply Chain. In: Alhajj, R., Moshirpour, M., Far, B. (eds) Data Management and Analysis. Studies in Big Data, vol 65. Springer, Cham. https://doi.org/10.1007/978-3-030-32587-9_5
Download citation
DOI: https://doi.org/10.1007/978-3-030-32587-9_5
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-32586-2
Online ISBN: 978-3-030-32587-9
eBook Packages: EngineeringEngineering (R0)