An Advanced Capable-to-Promise System for Hybrid Production Strateg

In a supply chain, manufacturers strive to find a suitable demand fulfilment approach. Generally, an order fulfillment method includes receiving, processing, and delivering orders to customers. To design such a fulfilment method for a certain business, it is mandatory to consider the employed production strategy in that particular supply chain. To date, many order fulfilment processes, considering the make-to-order (MTO), make-to-stock (MTS), and assemble-to-order (ATO) manufacturing strategies, have been developed. Yet, a compatible order fulfilment process with the hybrid production strategy (HPS) still needs to be developed. The HPS is a combination of the MTO and MTS which have been used for over a decade. This strategy is encountered most often in industries such as earth construction equipment, heavy-duty vehicles, and machine tools.;The aim of this dissertation is to present an advanced capable-to-promise system (ACTP) for the HPS industries in order to maximize the revenue derived from fulfilling an order from a customer. First the ACTP framework is used to illustrate what process an incoming order undergoes until it is fulfilled. Then within the framework, an Order Acceptance Model (OAM) is proposed to simultaneously consider production strategy, production capacity, and customer priority. Consequently, this leads to higher profits. The proposed OAM rejects or accepts customer's orders based on available stocks of raw material, component, and finished product (production capacity). The proposed acceptance procedure is distinguished from traditional methods because of considering production capacity assessment in order to complete an order. Moreover, preserving an uncommitted quantity (e.g., an available production capacity) for more profitable orders beneficially affects total profit. All customers are classified according to their revenue contributions yielded from satisfying orders. One main contribution of this study is formulating the ACTP system for the HPS systems on the basis of the customer order decoupling point (CODP). After accepting potential orders using OAM model, the proposed ACTP identifies uncommitted availabilities which are those production capacities to which no job has been assigned. In the literature, they are known as "capable-to-promise" (CTP) quantity. Subsequently, an accepted order, which is already obtained from the proposed OAM, will be assigned to a pre-identified CTP quantity. This assignment problem is solved through an optimization scheduling model taking into account of the earliest and latest due date desired by customers. We propose that the proposed ACTP mechanism will result in a more reliable quoting of due date and quantity promised in the HPS industries.;Finally, the proposed models are illustrated through two case studies for the OAM model and one case study for the ACTP model. The results of the case studies indicate that the effectiveness of the performance of the proposed OAM and ACTP models are better than the traditional one.