A Batch-wise ATP Procedure in Hybrid Make-to-Order/Make-to-Stock Manufacturing Environment

Satisfying customer demand necessitates manufacturers understanding the importance of Available-To-Promise (ATP). It directly links available resources to customer orders and has significant impact on overall performance of a supply chain. In this paper, an improvement of the batch-mode ATP function in which the partial fulfillment of the orders is available will be proposed. In other words, in a hybrid make-to-order/make-to-stock manufacturing environment, the proposed model responds to customer’s requests in 3 different ways; rejecting, fulfilling, and partial fulfilling. By using this procedure, the reliability of order fulfillment and the responsiveness of order promising will be enhanced. To evaluate the applicability of the proposed model, some numerical examples and sensitivity analysis are conducted. Results show that by applying partial fulfilment and penalty to backorders, the number of rejected orders and profit would be minimized and maximized, respectively.