Abstract
Article history: Received October 15, 2012 Accepted January 24, 2014 Available online March 4 2014 The way orders are accepted or rejected is the most important factor in customer satisfaction and success of make-to-order systems. The incoming orders to such organizations have certain delivery date in which the customer expects the order to be fulfilled and delivered. In some cases, unexpectedly increased orders exceed the existing capacity for on time fulfillment. In addition to rejection of order, as a typical choice, other options like outsourcing and capacity expansion are available to compensate for capacity shortage and deliver incoming orders according to schedule. However, each of the proposed options is superior in one or more criteria and so selecting the best one is not simply possible. The main goal of this study is to provide managers with a comprehensive, systematic, and applicable approach to evaluate and select the best of the existing options. For this purpose, a model comprised of some multicriteria techniques is delivered. Our proposed model is a blend of FAHP and FTOPSIS methods. In this model, FAHP is first used to determine the weight of criteria and then FuzzyTOPSIS (FTOPSIS) is employed to rank the options. Finally, the proposed model is applied on an actual case to assess and examine its efficiency. © 2014 Growing Science Ltd. All rights reserved.
Highlights
The manufacturing companies employ a variety of policies to satisfy customers by filling their orders and make-to-stock (MTS) and make-to-order (MTO) are amongst the key policies
In make-toorder systems, the production is based on the incoming orders (Arredondo & Martinez, 2010)
The primary objective of this paper is to propose a simple, systematic and applicable model for all organizations, using multi-criteria decision-making methods in order to help managers assess the proposed alternatives and to select the optimal alternative when facing with the orders, which would enter the organization unexpectedly and in high volume
Summary
The manufacturing companies employ a variety of policies to satisfy customers by filling their orders and make-to-stock (MTS) and make-to-order (MTO) are amongst the key policies. In make-to-stock systems, customers’ demands are met by stocking the products (Kalantari et al, 2011). In make-toorder systems, the production is based on the incoming orders (Arredondo & Martinez, 2010). The way an order is accepted or rejected is the most important factor for customer satisfaction and success of make-to-order systems. A suitable response develops organization’s share of today’s extremely competitive markets. Many researchers such as Rogers and Nandi (2007) and Zorzini et al (2008)
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