Abstract
The planning process that determines how the actual customer demand is fulfilled is called demand fulfillment. The demand fulfillment process calculates the first promise date for customer orders and—thus—strongly influences the order lead-time and the on time delivery. In today’s competitive markets it is important to generate fast and reliable order promises in order to retain customers and increase market share. This holds particularly true in an e-business environment: Orders are entered on-line in the e-business front end, and the customer expects to receive a reliable due date within a short time period.
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- 1.
In the following, we use the terms order promising and order quoting synonymously, as well as the terms promise and quote.
- 2.
For week 1 and 2 the master plan reflects the scheduled receipts.
- 3.
In the tire industry the decoupling point is usually located at the central DC. At the start of the winter tire business (in Western Europe usually in October), the demand for winter tires is at peak and exceeds the handling capacity of the central DC. Therefore the decoupling point for winter tire business is moved from the central DC to the regional DCs for that time period.
- 4.
Note that capable-to-promise can also be applied to ATO environments.
- 5.
For an overview on the relations between revenue management, demand fulfillment and ATP, inventory management/rationing, and pricing the reader is referred to Quante et al. (2009).
- 6.
In allocation situations (supply constrained supply chain) the per committed allocation policy may lead to a so-called shortage gaming behavior, as planners are motivated to forecast higher quantities than actually needed in order to increase their allocations. It is necessary to establish incentive systems to prevent shortage gaming. Otherwise this behavior may induce a bullwhip effect into the supply chain. Shortage gaming and the bullwhip effect are described in more detail in Chap. 1.
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Kilger, C., Meyr, H. (2015). Demand Fulfilment and ATP. In: Stadtler, H., Kilger, C., Meyr, H. (eds) Supply Chain Management and Advanced Planning. Springer Texts in Business and Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-55309-7_9
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