Managing product availability in an assemble-to-order supply chain with multiple customer segments

Ervolina, Thomas R.; Ettl, Markus; Lee, Young M.; Peters, Daniel J.

doi:10.1007/s00291-007-0113-4

Cited by 22 publications

(3 citation statements)

References 12 publications

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“…Since customers usually require an immediate response, real-time order promising approaches are more common in industrial environments. Common allocation planning approaches use rules (Cederborg and Rudberg 2009;Vogel and Meyr 2015;Kilger and Meyr 2015) or optimisation models based on linear programming (Ervolina et al 2009;Meyr 2009;Chien, Wu, and Wu 2013;Chen and Dong 2014;Chiang and Hsu 2014;Lebreton 2015;Framinan and Perez-Gonzalez 2016;Cano-Belmán and Meyr 2019). As differences between ADI and final order quantities lead to inefficiencies in the supply allocation, recent work has also specifically addressed the modelling of release mechanisms and supply reallocation approaches (e.g.…”

Section: Related Literaturementioning

confidence: 99%

A contract portfolio perspective on the role of customer order lead times in demand fulfilment processes with supply shortage

Seitz

Akkerman

Grunow

2021

International Journal of Production Research

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When demands exceed capacities, suppliers allocate available supply to customers based on customer importance and advance demand information. The accuracy of advance demand information interacts with the length of customer order lead times and influences overall customer service levels. In this paper, we analyse industrial contract portfolios with customer-specific terms in order to derive insights for contract portfolio management and the design of demand fulfilment processes. For this purpose, we develop a framework for analysis of contract portfolios capturing the dynamics of industrial planning processes. The framework is applied to portfolios from the semiconductor sector. Our numerical analysis shows that, in order to improve service levels, demand fulfilment processes and contract portfolio management must especially take into account the length of order lead times and the accuracy of advance demand information. Even though suppliers often prefer long order lead times, our analysis shows that demand fulfilment performance is not primarily determined by the absolute length of the order lead times but by the presence of a negative correlation with the accuracy of advance demand information in the entire contract portfolio. Consequently, these factors require increased attention in the management of contract portfolios and in the negotiation of individual contracts.

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Section: Related Literaturementioning

confidence: 99%

A contract portfolio perspective on the role of customer order lead times in demand fulfilment processes with supply shortage

Seitz

Akkerman

Grunow

2021

International Journal of Production Research

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“…In the present study, product availability is defined as product is available in the market such that consumers can purchase. Numerous studies have attempted to explain product availability and consumer's purchase (Bian & Moutinho, 2011;Conlon & Mortimer, 2012;Ervolina et al, 2009;Steinhart et al, 2013). For instance, Conlon and Mortimer (2012) argue that product availability can vary over time due to several factors such as mergers, foreclosure and others.…”

Section: Product Availabilitymentioning

confidence: 99%

The Covid-19 Pandemic: Factors Triggering Panic Buying Behaviour Among Consumers in Malaysia

Gazali

2020

LBIBF

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The primary aim of this paper is to assess the factors that trigger panic buying behaviour among consumers in Malaysia. The paper offers a conceptual framework in understanding the factors that trigger panic buying among consumers in Malaysia. Results indicate five important factors that trigger panic buying behaviour among consumers in Malaysia such as herd behaviour, social media exposure, anxiety sensitivity, price and product availability. The study contributes to our understanding of panic buying behaviour. The most important limitation lies in the fact that this study is based on conceptual in nature and has not been able to confirm the relationship between variables empirically. These findings are relevant to both practitioners, policymakers and researchers. These findings add to a growing body of literature on panic buying behaviour and help other researchers to design their study in panic buying milieu. A future study investigating the mentioned variables would be very interesting. In terms of directions for future research, further work could validate the relationship between mentioned variables and provide an empirical analysis. The importance and originality of this study is that it explores that factors that trigger panic buying behaviour among consumers in Malaysia.

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“…For instance, the drought in Ethiopia reduced crop yield by 90% [22]. While investigating the effects of substitution on panic buying, Ervolina et al [23] considered two different customers: customers likely to accept product substitutions and those unlikely to accept substitutions. In panic situations and under the pressure of scarcity, most customers are willing to accept products of the same brand as substitutes.…”

Section: Introductionmentioning

confidence: 99%

Product substitution with customer segmentation under panic buying behavior

Tsao

Raj

2019

Scientia Iranica

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Under conditions of consumer panic buying, satisfying demand with the available products is a complex problem. In reality, most retailers accept alternative products during panic situations. This study considers the case of firm-driven substitution of products (differing in weight) based on retailer preferences over two time-periods. In the proposed model, panic behavior emerged in the first time-period and interruption in supply occurred in the second time-period. Under this model, retail stores were segmented into high index (valuable) and low index (less valuable) customers. Before meeting the demand of low-index customers, wholesalers attempt to satiate high-index customer's panic buying behavior. To generate maximum wholesaler's total profit, we find the optimal amount of substitution quantity, quantity to order, and leftover units. The model is investigated for both without and with substitution. To gain managerial insights, we also examined the influence of both the degree of interruption in supply and substitution costs on profits and decisions. The results can assist business managers to improve the decision-making process.

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Managing product availability in an assemble-to-order supply chain with multiple customer segments

Cited by 22 publications

References 12 publications

A contract portfolio perspective on the role of customer order lead times in demand fulfilment processes with supply shortage

A contract portfolio perspective on the role of customer order lead times in demand fulfilment processes with supply shortage

The Covid-19 Pandemic: Factors Triggering Panic Buying Behaviour Among Consumers in Malaysia

Product substitution with customer segmentation under panic buying behavior

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