Allocation Planning Model Based on ATP in Assemble-to-Order Supply Chain

Abstract

Allocation planning based on Available to Promise (ATP) is proved to increase revenues by the pre-allocated availability in the customer hierarchy. However, whatever allocation rules, to a great extent, the improvement depends on the reliable information about ATP supply and customer demand, thus some unallocated availability of components and capacities are remained to fulfill the unexpected orders in an assemble-to-order supply chain system. This paper presents an allocation planning model based on ATP to assign availability in the customer hierarchy and designs four scenarios to investigate how the performance measures of interest behave as we change the ratios of unallocated availability of components and capacities of factories. The performance analysis in this paper have shown that the model based on allocated ATP ensures important customer orders fulfillments and balance the demand and supply profitably.