Advances in profit-driven order promising for make-to-stock environments – a case study with a Canadian softwood lumber manufacturer

Abstract

ABSTRACTProfit-driven order promising mechanisms have been receiving increasing attention from academia and practitioners in recent years. In spite of the recent advances in the field, its application in practice still remains a challenge. One of the most interesting approaches currently discussed is called aATP (allocated available-to-promise). In this paper, we propose some advances for current state-of-the-art aATP constructions in make-to-stock environments, mainly adapting it to commodity products sold through spot markets. Practical situations are tested through simulations supported by real data obtained from a major softwood manufacturer in Canada. Examples show that the proposed approach can increase the profitability of the producer.