Manufacturer Due Dates to Realize Effective Coordination Among Supply Chain Parties in a Make-to-Order Context

概要

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This paper presents a methodology for achieving effective coordination among supply chain parties in situations where the manufacturer makes various products based on orders received from an unspecified number of customers. The customers usually wish to obtain their products as early as possible or to set their due dates unilaterally. Naturally the manufacturer's workload varies over time and sometimes greatly exceeds its production capacity when many customers' orders coincide. It is clear that manufacturing costs can undergo extraordinary increases, raising product prices when the manufacturer changes its production capacity according to the customers' demands. The sole acceptable solution for both the customers and the manufacturer is coordination among all parties through information sharing, which will lead them to decide on appropriate due dates based on the overall benefit. The present paper proposes the concept of ideal manufacturer due dates that are estimated by considering all ongoing customer orders and shop status predictions, while still essentially guaranteeing fulfillment. We also present a methodology for quantifying the losses a supply chain can suffer due to customers' unilateral actions. Finally, a method is discussed in which customers are motivated to select due dates close to the ideal manufacturer due dates, taking into consideration product price increments that may result from choosing particular due dates.
2010-08-15