Quantity and Due Date Quoting Available to Promise

Authors:
Chien-Yu Chen;Zhen-Ying Zhao;Michael O. Ball
Affiliations:
Robert H. Smith School of Business, University of Maryland, College Park, MD 20742, USA;Robert H. Smith School of Business, University of Maryland, College Park, MD 20742, USA;Robert H. Smith School of Business, University of Maryland, College Park, MD 20742, USA. mball@rhsmith.umd.edu
Venue:
Information Systems Frontiers
Year:
2001

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Abstract

The available to promise (ATP) function has increasingly attracted the attention of the supply chain management research community as a tool for enhancing the responsiveness of order promising and the reliability of order fulfillment. It directly links available resources, including both material and capacity, with customer orders and, thus, affects the overall performance of a supply chain. In this paper, a mixed integer programming (MIP) model for a quantity and due date quoting ATP mechanism is presented. This model can provide individual order delivery dates for a batch of customer orders that arrive within a predefined batching interval. In addition, the model allows customized configurations and takes into account a variety of realistic supply chain constraints, such as material compatibility, substitution preferences, capacity utilization, and material reserve. We conclude this paper with sensitivity analysis of performance impacts with respect to batching interval size and material reserve policy.