A Method for Justifying the Acceptance of Rush Orders in a Supply Chain
Urgent demands from customers, known as rush orders, often occur in industries. However, most existing studies seldom discuss the economical justification of accepting such orders. In this paper, a method is proposed to decide whether or not an arriving rush order should be accepted in a supply chain environment. In this method, a reward of accepting the rush order is compared with an extra cost generated by other affected orders caused by accepting the rush order in the supply chain. If the reward is greater than or equal to the extra cost, the rush order is accepted. Otherwise, the rush order is rejected. In order to verify this proposed method, three non-controlled order acceptance methods: (1) rejecting all rush orders, (2) accepting all rush orders and (3) randomly accepting rush orders are used to compare with this proposed method on the criterion of total profit via computer simulation. The results show the proposed method outperforms these three non-controlled order acceptance methods.
Supply chain management Rush orders Justification model Simulation
Shu-Chu LIU Yin-Jing HSIEH
National Pingtung University of Science and Technology Pingtung,912 Taiwan,China
国际会议
北京
英文
2007-05-30（万方平台首次上网日期，不代表论文的发表时间）