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Evaluating order acceptance policies for divergent production systems with co-production

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Listed:
  • Ludwig Dumetz
  • Jonathan Gaudreault
  • André Thomas
  • Nadia Lehoux
  • Philippe Marier
  • Hind El-Haouzi

Abstract

The impacts of using different order acceptance policies in manufacturing sectors are usually well known and documented in the literature. However, for industries facing divergent processes with co-production (i.e. several products produced at the same time from a common raw material), the evaluation, comparison and selection of policies are not trivial tasks. This paper proposes a framework to enable this evaluation. Using a simulation model that integrates a custom-built ERP, we compare and evaluate different order acceptance policies in various market conditions. Experiments are carried out using a case from the forest products industry. Results illustrate how and when different market conditions related to divergent/co-production industries may call for available-to-promise (ATP), capable-to-promise (CTP), and other known strategies. Especially, we show that advanced order acceptance policies like CTP may generate a better income for certain types of market and, conversely to typical manufacturing industries, ATP performs better than other strategies for a specific demand patterns.

Suggested Citation

  • Ludwig Dumetz & Jonathan Gaudreault & André Thomas & Nadia Lehoux & Philippe Marier & Hind El-Haouzi, 2017. "Evaluating order acceptance policies for divergent production systems with co-production," International Journal of Production Research, Taylor & Francis Journals, vol. 55(13), pages 3631-3643, July.
    • Handle: RePEc:taf:tprsxx:v:55:y:2017:i:13:p:3631-3643
    DOI: 10.1080/00207543.2016.1193250
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    References listed on IDEAS

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    1. CRAMA, Yves & POCHET, Yves & WERA, Yannic, 2001. "A discussion of production planning approaches in the process industry," LIDAM Discussion Papers CORE 2001042, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Oner, Selma & Bilgic, Taner, 2008. "Economic lot scheduling with uncontrolled co-production," European Journal of Operational Research, Elsevier, vol. 188(3), pages 793-810, August.
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