The effects of hybrid order processing strategies on economic and logistic objectives

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In a dynamic environment, companies face the challenge of increasing customer requirements. Today’s customers expect fast delivery of affordable and to their needs tailored products. As a result, companies need to act more flexible and thus move away from pure make-to-stock and make-to-order productions described in literature. Shifting the customer order decoupling point to in-between order processing strategies such as assemble-to-order can increase the probability of meeting the customised demand on time. In addition, companies in practice use a variety of different methods for processes like order generation, order release, sequencing and lot sizing to adjust their chosen order processing strategy to fit their individual needs. An example known from industry regarding such hybrid order processing strategy is a make-to-order production with fixed lot sizes. The share of a batch, which is not needed to satisfy the customer’s order, is stored. These leftover products allow very short delivery times for small order quantities. In this paper, possibilities to generate such hybrid order processing strategies are identified and structured. Causal diagrams and logistic models are used to analyse the effects of hybrid order processing strategies on economic and logistic objectives.
Original languageEnglish
JournalProcedia CIRP
Volume96
Pages (from-to)266-271
Number of pages6
ISSN2212-8271
DOIs
Publication statusPublished - 01.01.2021
Event8th CIRP Global Web Conference 2020: Flexible Mass Customisation -
Duration: 14.10.202016.10.2020
Conference number: 8
https://iiw.kuleuven.be/events/cirpe2020

Bibliographical note

The research project was carried out in the framework of the industrial collective research programme (IGF no. 20906 N). It was supported by the Federal Ministry for Economic Affairs and Energy (BMWi) through the AiF (German Federation of Industrial Research Associations eV) and the BVL (Bundesvereinigung Logistik eV) based on a decision taken by the German Bundestag.

Publisher Copyright:
© 2020 Elsevier B.V.. All rights reserved.

    Research areas

  • Engineering - Hybrid Order Processing Strategies, Logistic Models, Flexible Production Systems

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