Supporting the Decision of the Order Processing Strategy by Using Logistic Models: A Case Study
Research output: Contributions to collected editions/works › Article in conference proceedings › Research › peer-review
Authors
The selection of a suitable order processing strategy from an economic and logistic point of view plays a fundamental role in the achievement of efficient and waste-free production processes. Many factors influence the order processing strategy and the choice of the order processing strategy affects many variables. The problem for companies that has not yet been solved is the holistic selection of the best possible order processing strategy for each product or product group and, if necessary, subordinate components.
The authors present an approach to analyze the effects of the choice of the order processing strategy on the economic and logistic objectives. The description and modeling of the interdependencies between the order processing strategies and the influenced objectives refer to existing logistic models. A case study to evaluate the impact of different order processing strategies on costs shows the practicality of the proposed approach. The exemplary application of the presented approach showed a potential of an average reduction of 30% of the variable costs resulting from the change of the order processing strategy. The savings varied between 1% and 62% depending on the order quantity and frequency for the individual products.
The authors present an approach to analyze the effects of the choice of the order processing strategy on the economic and logistic objectives. The description and modeling of the interdependencies between the order processing strategies and the influenced objectives refer to existing logistic models. A case study to evaluate the impact of different order processing strategies on costs shows the practicality of the proposed approach. The exemplary application of the presented approach showed a potential of an average reduction of 30% of the variable costs resulting from the change of the order processing strategy. The savings varied between 1% and 62% depending on the order quantity and frequency for the individual products.
Original language | English |
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Title of host publication | Advances in Production Management Systems : The Path to Digital Transformation and Innovation of Production Management Systems; IFIP WG 5.7 International Conference, APMS 2020 Novi Sad, Serbia, August 30 – September 3, 2020 Proceedings, Part I |
Editors | Bojan Lalic, Ugljesa Marjanovic, Vidosav Majstorovic, Gregor von Cieminski, David Romero |
Number of pages | 8 |
Volume | 1 |
Place of Publication | Cham |
Publisher | Springer |
Publication date | 2020 |
Pages | 343-350 |
ISBN (print) | 978-3-030-57992-0 |
ISBN (electronic) | 978-3-030-57993-7 |
DOIs | |
Publication status | Published - 2020 |
Event | International IFIP WG 5.7 Conference on Advances in Production Management Systems: The path to digital transformation and innovation of production management systems - University of Novi Sad, Novi Sad, Serbia Duration: 30.08.2020 → 03.09.2020 |
- Engineering - Order processing strategy, Interdependencies, Logistic models