Abstract
To be competitive in an e-business era, it is critical to make not only responsive but also profitable order promises with an Available-to-Promise (ATP) system. While common practice like first-come-first-served (FCFS) basis will deteriorate overall profit especially under resource shortage situation. In this paper, a dynamic resource reservation policy for order-promising was proposed to prevent current less-profitable customer orders from over consuming the critical resource. Assuming known independent demand distributions, a corresponding stochastic model was developed. Finally, simulation experiments were conducted and showed that the benefit of enforcing the policy is correlated to initial availability.
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Zhang, J., Qin, W., Wang, W. (2015). An Available-to-Promise Model for Periodical Order Promising. In: Zhang, Z., Shen, Z., Zhang, J., Zhang, R. (eds) LISS 2014. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-43871-8_26
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DOI: https://doi.org/10.1007/978-3-662-43871-8_26
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Online ISBN: 978-3-662-43871-8
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