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Mathematical Programming-Based Sales and Operations Planning at Vestel Electronics

Author

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  • Z. Caner Taşkın

    (Department of Industrial Engineering, Boğaziçi University, 34342, İstanbul, Turkey)

  • Semra Ağralı

    (Department of Industrial Engineering, Bahçeşehir University, 34353, İstanbul, Turkey)

  • A. Tamer Ünal

    (Department of Industrial Engineering, Boğaziçi University, 34342, İstanbul, Turkey)

  • Vahdet Belada

    (Vestel Electronics, 45030, Manisa, Turkey)

  • Filiz Gökten-Yılmaz

    (Vestel Electronics, 45030, Manisa, Turkey)

Abstract

We investigate the sales and operations planning (S&OP) process at Vestel Electronics, a major television manufacturer located in Turkey. The company has a large product portfolio because its products have many configuration options, and its product portfolio changes rapidly as a result of technological advances. Demand volatility is high, and materials procurement requires long lead times. Hence, the S&OP process is critical for efficient management of company resources and its supply chain and to ensure customer satisfaction. We devise a mathematical programming formulation for Vestel’s S&OP process and describe our experience in implementing a decision support system (DSS) based on our optimization model. We fully implemented and deployed our DSS at Vestel, which has used it every day since 2011.

Suggested Citation

  • Z. Caner Taşkın & Semra Ağralı & A. Tamer Ünal & Vahdet Belada & Filiz Gökten-Yılmaz, 2015. "Mathematical Programming-Based Sales and Operations Planning at Vestel Electronics," Interfaces, INFORMS, vol. 45(4), pages 325-340, August.
    • Handle: RePEc:inm:orinte:v:45:y:2015:i:4:p:325-340
    DOI: 10.1287/inte.2015.0793
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    References listed on IDEAS

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    1. Tavares Thomé, Antônio Márcio & Scavarda, Luiz Felipe & Fernandez, Nicole Suclla & Scavarda, Annibal José, 2012. "Sales and operations planning: A research synthesis," International Journal of Production Economics, Elsevier, vol. 138(1), pages 1-13.
    2. Feng, Yan & D'Amours, Sophie & Beauregard, Robert, 2008. "The value of sales and operations planning in oriented strand board industry with make-to-order manufacturing system: Cross functional integration under deterministic demand and spot market recourse," International Journal of Production Economics, Elsevier, vol. 115(1), pages 189-209, September.
    3. Olivier Guieu & John W. Chinneck, 1999. "Analyzing Infeasible Mixed-Integer and Integer Linear Programs," INFORMS Journal on Computing, INFORMS, vol. 11(1), pages 63-77, February.
    4. Chen-Ritzo, Ching-Hua & Ervolina, Tom & Harrison, Terry P. & Gupta, Barun, 2010. "Sales and operations planning in systems with order configuration uncertainty," European Journal of Operational Research, Elsevier, vol. 205(3), pages 604-614, September.
    5. Seokcheol Chang & Jaewoo Chung, 2013. "Optimization Models for Production Planning in LG Display," Interfaces, INFORMS, vol. 43(6), pages 518-529, December.
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    Cited by:

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