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Availability management in configure-to-order manufacturing systems

Yöntem, Hüseyin Erdem
AVAILABILITY MANAGEMENT IN CONFIGURE-TO-ORDER MANUFACTURING SYSTEMS Yöntem, Hüseyin Erdem M.Sc., Operational Research Supervisor: Asst. Prof. Dr. Sedef Meral December 2009, 98 pages In resource constrained supply chains, where demand is higher than the supply, the decision whether to accept or reject the customer order is a very critical task from resource planning and customer service level perspectives. Since the customers, in today‘s e-business environment, expect quick responses to their orders, some in-advance work has to be done before the arrival of actual customer orders, especially in configure-to-order (CTO) and make-to-order (MTO) production systems. Available-to-Promise (ATP) is a business function that is becoming the central management system for today‘s dynamic supply chains whose responsibility is to respond customer orders by considering the trade-off between front-end customer satisfaction and back-end capacity allocation. In this study, we propose an availability management approach that introduces push-based allocation planning by using order segmentation before the arrival of actual customer orders in CTO production environments. Moreover, a two-step order promising framework is introduced in order to increase customer service levels through giving certain or v tentative delivery dates immediately to customer orders before the batch, rule-based actual resource consumption processes. The proposed approach is applied to the real-life processes of an enterprise in order to analyze its applicability and evaluate the benefits that accrue. The results of the experiments prove that, the four-phased availability management approach contribute to both overall profit and customer service levels.