An available-to-promise stochastic model for order promising based on dynamic resource reservation policy

Facing uncertain future customer orders, a pull-based available-to-promise (ATP) mechanism will deteriorate the overall profit since it allocates critical resources only to current orders. To prevent less-profitable orders from over-consuming resources, this study investigates push–pull based ATP problem with two time stages and three margin levels, develops dynamic resource reservation policy maximise expected total profit. Then, corresponding stochastic model is established known independent demand distributions, optimal level derived by genetic algorithm Finally, series of simulation experiments are conducted reveal impact some key factors, experiment results provide theoretical guidance implementation methods for companies profits.