ENHANCE ORDER PROMISING WITH ATP ALLOCATION PLANNING CONSIDERING MATERIAL AND CAPACITY CONSTRAINTS

Abstract

ABSTRACT Available-to-promise (ATP) calculating from master production schedule (MPS) exhibit availability of finished goods that can be used to support customer order promising. This order promising mechanism is adapted in MTS (make-to-stock) production model and all orders are treated the same on first-come-first-served policy. However, increasingly mass customization results in production model gradually transfers from MTS to ATO (assembly-to-order) or MTO (make-to-order) in order to fulfill the requests from customers such as customer's preference materials or specifications for the ordered products. In ATO or MTO model, the manufacturing resource such as materials and capacity after order penetration point should be checked and allocated for order promising. Moreover, mass customization also drives the trend of customer demand to segmentation and prioritization according to product profit, sales growth potential, contracts or the relationships with customers. Therefore, this research proposes one order promising mechanism that applies mixed integer linear programming (MILP) model to prioritize allocating manufacturing resource for high profit products or important customers and to consider material and capacity constraints after order penetration point. Furthermore, this order promising mechanism takes thin film transistor liquid crystal display (TFT-LCD) manufacturing as illustration for these material and capacity constraints after order penetration point.