Demand management strategies for assemble-to-order production environments

Abstract

This research focuses on the relatively new topic of demand management (DM) in an assemble-to-order production environment. Its objective is to present a framework for analysing and understanding the complex issues of DM. Special attention is given to situations where production is sustained at a relatively constant rate and demand management is needed to consume production capacity in an efficient manner. The research presents: (1) an examination of the assemble-to-order environment and several naive but logical strategies for demand management; (2) definitions of order types experienced by demand management systems; (3) an explanation of a simulation model and factors; and (4) an assessment of the simulated performance of the strategies.