ResearchPublications
Effects Of Different Order Processing Strategies On Operating Curves Of Logistic Models: A Comparison Of Make-to-Order And Make-to-Stock

Effects Of Different Order Processing Strategies On Operating Curves Of Logistic Models: A Comparison Of Make-to-Order And Make-to-Stock

Categories Zeitschriften/Aufsätze (reviewed)
Year 2021
Authors Wolff, K. Maier, J. T.; Heuer, T.; Nyhuis, P.; Schmidt, M.
Published In Journal of Production Systems and Logistics 1 (2021), 18
Description

Complexity in the decision-making process regarding the order processing strategy results from the interaction of various parameters. Exemplary influencing factors are the durability of products, the desired delivery times, and the required product variants. In practice, uncertainties of customer behavior and existing time pressure complicate decision-making processes even more. Given this scenario, continuously determining the most suitable order processing strategy for each product presents a great challenge for companies. Logistic models reflect logistic interdependencies and, therefore, can serve as a starting point for a holistic model assisting in selecting the order processing strategy. However, logistic models are influenced by the order processing strategy. It affects the shape of operating curves as well as the position of operating points in logistic models. In this paper, the impact of the order processing strategies Make-to-Stock and Make-to-Order on the operating curves of logistic models is addressed. It includes a discussion of the effects of these strategies on the economic and logistic objectives as well as a description of the procedure used for analyzing the effects of the order processing strategy on the operating curves of different logistic models. The analysis focuses on individual products within a company’s internal supply chain. An exemplary application on a data set from industry demonstrates the general practicability of the approach. The production operating curves and the storage operating curves are used as examples to show the effects of changing the order processing strategy as well as the effects of using both strategies at the same time.  

DOI https://doi.org/10.15488/11532