Abstract
In today's intense global competition, problems still exist under the umbrella of Just-in-Time application in the field of order management. The management of a firm usually faces difficulty in allocating stock to fulfil customer order, especially in the case of receiving a sudden change request from customers. In order to ease order allocation issues aroused by JIT, an intelligent system, namely, Intelligent Sales Order Handling System (ISOAS), is developed through the integration of fuzzy-AHP approach for decision making process in order allocation. This approach enables the selection of desired sales orders based on multiple criteria which may be quantitative or qualitative in nature, according to the judgment of scholars and domain experts. With ISOAS, customer orders are prioritized with respect to the values according to their performance under each decision making attributes. The degree of confidence of the decision judgements are quantified through the spread of fuzzy numbers with fuzzy pairwise comparison calculations. The approach can transform the fuzziness of human preference into the measurable number, enabling the operation of the AI-based system to assist humans in decision-making. An order allocation case study in a logistics department is demonstrated in this study. Results indicate an improved efficiency during the decision making process.
Highlights
Just-in-time (JIT) is one of the popular production methodologies in supply chain management system
The database of Intelligent Sales Order Handling System (ISOAS) is the information storehouse for collecting, storing and sorting four main types of data: (i) sales order details, which are entered into the system according to the information stated in the contract signed by the customer and the firm, and (ii) the purchase order information which is retrieved from the supplier side, and (iii) the inventory records of the company warehouse, which are changeable information and varies with the inflow and outflow of sale order and purchase order, and (iv) the customer records
Customer order selection The customer prioritization procedure of ISOAS is completed by selecting the candidate that gives the highest score calculated in Step 4 using Fuzzy-AHP computational procedures
Summary
Just-in-time (JIT) is one of the popular production methodologies in supply chain management system. Uncertainties frequently exist in the customer side, such as any change in customer requested arrival date for goods delivery, or an unpredictable sales order is being placed. These uncertainties may lead to an increase in the inventory or stock shortage in the supply chain, which would totally violate the intention of JIT operations. Storage is a type of waste in the business process It occupies the space and increase the costs of warehouse management, and the company may get the capital loss and violates the original concept of JIT. Through the decision support generated by the proposed approach, a company is able to properly allocate the limited stock to the most appropriate customer while minimizing the undesired effect due to the issue of the shortage of stock
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