Supply chain planning: using simulation to evaluate buffer adjustment methods in order promising

ABSTRACT

Much literature exists for scheduling production, but there is little work on establishing the due dates that serve as the inputs to developing a production schedule. We call this Order Promising. This paper explores a simulation-based approach for evaluating methods for promising the delivery of orders based on dynamic buffer adjustment coupled with various methods to forecast the amount of buffer required. The primary objective of the paper is to frame the problem and suggest methods of analysis. Preliminary computational results are also presented.

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