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Using an incentive-compatibility due-date quotation to improve the performance for one-of-a-kind production shop floors controlled by load-based pull systems

Author

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  • Guodong Huang
  • Yacob Khojasteh

Abstract

For one-of-a-kind production (OKP) manufacturers adopting an engineer-to-order or make-to-order marketing strategy, it is very important to set an appropriate due date. We design an incentive-compatibility due-date quotation procedure to help OKP manufacturers obtain the rational due-date quotation from OKP customers. Based on the rational due-date quotation decision-making, the performance of an OKP shop floor controlled by load-based pull systems is evaluated in simulation. Our findings show that if the collaboration of due-date quotations and load-based pull control is effective, the order profit of OKP manufacturers will not be reduced when the delivery delay occurs. This study can provide more insights on order quotation decision-making and pull production control for OKP manufacturers.

Suggested Citation

  • Guodong Huang & Yacob Khojasteh, 2024. "Using an incentive-compatibility due-date quotation to improve the performance for one-of-a-kind production shop floors controlled by load-based pull systems," International Journal of Production Research, Taylor & Francis Journals, vol. 62(4), pages 1072-1091, February.
    • Handle: RePEc:taf:tprsxx:v:62:y:2024:i:4:p:1072-1091
    DOI: 10.1080/00207543.2023.2175308
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