Using an incentive-compatibility due-date quotation to improve the performance for one-of-a-kind production shop floors controlled by load-based pull systems

ABSTRACT

For one-of-a-kind production (OKP) manufacturers adopting an engineer-to-order or make-to-order marketing strategy, it is very important to set an appropriate due date. We design an incentive-compatibility due-date quotation procedure to help OKP manufacturers obtain the rational due-date quotation from OKP customers. Based on the rational due-date quotation decision-making, the performance of an OKP shop floor controlled by load-based pull systems is evaluated in simulation. Our findings show that if the collaboration of due-date quotations and load-based pull control is effective, the order profit of OKP manufacturers will not be reduced when the delivery delay occurs. This study can provide more insights on order quotation decision-making and pull production control for OKP manufacturers.

KEYWORDS:

• One-of-a-kind production
• quotation
• pull system
• PBB
• incentive-compatibility

Acknowledgments

This work was supported by the Chengdu Science and Technology Project under [grant number 2021-YF08-00019-GX] and the Scientific Research Foundation of Xihua University under [grant number w202254]. We thank the editors and anonymous referees for their helpful comments on earlier versions of our paper.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

The authors confirm that the data supporting the findings of this study are available within the article.

Additional information

Notes on contributors

Guodong Huang

Guodong Huang is currently a researcher and serves as Head of the Department of Industrial Engineering at the School of Management, Xihua University, China. He received his MSc and PhD both in Management Science and Engineering from Nanjing University of Science & Technology, China. His research interests include one-of-a-kind production, service-oriented manufacturing, and pull production systems. His research has been published in academic journals including International Journal of Production Research, Journal of the Operational Research Society, Journal of Intelligent Manufacturing, and International Journal of Computer Integrated Manufacturing.

Yacob Khojasteh

Yacob Khojasteh is a Professor of Operations Management at the Graduate School of Global Studies, Sophia University, Tokyo, Japan. He was a Visiting Professor at the Department of Mechanical and Industrial Engineering, Toronto Metropolitan University in Canada in 2021-2022. He received his Ph.D. in Engineering from the University of Tsukuba, Japan. His recent book entitled Supply Chain Risk Mitigation: Strategies, Methods, and Applications was published in 2022 by Springer. Also, his previous books on Production Control Systems, Production Management, and Supply Chain Risk Management were published (by Springer Nature and CRC Press) in 2016, 2017, and 2018, respectively. He has several years of professional experience in industry and consulting. His research interests include production and operations management, supply chain management, logistics and warehousing, systems modeling and optimization, and lean production systems.