Simulation to reallocate supply to committed orders under shortage

Abstract

This article aims to deal with the reallocating supply problem in both its real and planned contexts, to orders that result from the order promising process under shortage. To this end, we propose a system dynamics-based simulation model to facilitate modelling for order managers, and to provide a graphic support tool to understand the process and to make decisions. The basis of the simulation model’s structure is a mixed-integer linear programming approach that intends to maximise profits by considering the possibility of making partial and delayed deliveries. To illustrate this, we consider a real-world problem from the ceramic sector that contemplates 35 orders. We obtained a solution by a mathematical programming model and a simulation model. The results show the simulation model’s capacity to obtain near-optimum results, and to provide a simulated history of the system.

Keywords:

• available-to-promise
• lack of homogeneity
• shortage
• simulation
• system dynamics
• ceramic sector

ORCID

Josefa Mula http://orcid.org/0000-0002-8447-3387