Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/310128 
Year of Publication: 
2021
Citation: 
[Journal:] Logistics [ISSN:] 2305-6290 [Volume:] 5 [Issue:] 1 [Article No.:] 3 [Year:] 2021 [Pages:] 1-24
Publisher: 
MDPI, Basel
Abstract: 
This paper is concerned with demand planning for internal supply chains consisting of workstations, production facilities, warehouses, and transportation links. We address the issue of how to help a supplier firmly accept orders and subsequently plan to fulfill demand. We first formulate a linear aggregate planning model for demand management that incorporates elements of order promising, recipe run constraints, and capacity limitations. Using several scenarios, we discuss the use of the model in demand planning and capacity planning to help a supplier firmly respond to requests for quotations. We extend the model to incorporate congestion effects at assembly and blending nodes using clearing functions; the resulting model is nonlinear. We develop and test two algorithms to solve the nonlinear model: one based on inner approximation and the other on outer approximation.
Subjects: 
supply chain management
demand planning
order promising
capacity planning
enterprise resource planning
clearing functions
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
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