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The effect of advance demand information on a pull production system with two customer classes.

Sarkar S
Blacksburg, VA: Virginia Polytechnic Institute and State University, 2007 May; :1-102
In many situations, different consumers have different degrees of willingness to wait to get delivery of a product. So, consumers can be segregated based upon the demand lead time they are providing. In this paper, two types of consumers have been considered. The first category needs immediate delivery of the product, so there is no demand lead time; whereas for the other category, demand lead time is positive. A manufacturer, which produces the items using a base stock policy, can benefit from the advance demand information that the second category of consumers are providing. Early fulfillment for a particular order means fulfilling the order before the demand lead time. In this research, it is shown that a restrictive early fulfillment policy can help the firm to reduce the chances of order loss. A production control approach for restrictive early fulfillment is discussed and the factors that may affect the early fulfillment policy are examined.
Materials-storage; Manual-materials-handling; Safety-practices; Safety-measures; Retail-workers; Workers; Work-environment; Author Keywords: Production Control; Pull System; Advance Demand Information
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The effect of advance demand information on a pull production system with two customer classes
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Virginia Polytechnic Institute and State University
Page last reviewed: February 4, 2022
Content source: National Institute for Occupational Safety and Health Education and Information Division