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Kriging analysis of an integrated demand management process in softwood industry

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Objective: This paper aims to develop a basic understanding of a demand management process integrating sales and operations planning (S&OP) and order promising in a Make-To-Stock environment and to compare different demand management policies. Contribution: Typical researches about demand management processes analyze few system specifications or vary few potential factors one at time. Yet, we can get additional insights by employing design of experiments (DOE). Methodology: For making promises, we compare a First-Come First-Served approach to an approach using nested booking limits and giving advantage to profitable customers and attractive periods. Considering various sequences of order arrival, we generate Kriging metamodels that best describe the nonlinear relationships between the simulation responses and system factors for Canadian softwood lumber firms. We employ a Latin hypercube design to take into account different environmental scenarios. Results: Our analysis reveals the potential to improve the performance of the demand management process if we know high-priority customers needs before fulfilling less-priority orders and if we use nested booking limits concept.

IFAC PapersOnLine , Vol. 50 (1), 6190–6195 (2017)
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Integrated demand management process , Revenue management , Sales , Operations planning , Design of experiments , Kriging , Softwood lumber industry
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article de recherche