Evaluating order acceptance policies for divergent production systems with co-production

Abstract

The impacts of using different order acceptance policies in manufacturing sectors are usually well known and documented in the literature. However, for industries facing divergent processes with co-production (i.e. several products produced at the same time from a common raw material), the evaluation, comparison and selection of policies are not trivial tasks. This paper proposes a framework to enable this evaluation. Using a simulation model that integrates a custom-built ERP, we compare and evaluate different order acceptance policies in various market conditions. Experiments are carried out using a case from the forest products industry. Results illustrate how and when different market conditions related to divergent/co-production industries may call for available-to-promise (ATP), capable-to-promise (CTP), and other known strategies. Especially, we show that advanced order acceptance policies like CTP may generate a better income for certain types of market and, conversely to typical manufacturing industries, ATP performs better than other strategies for a specific demand patterns.