Improved decision support for order allocation in a multisite production environment
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School of Engineering |
Master's thesis
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Date
2010
Major/Subject
Teollisuustalous
Mcode
TU-22
Degree programme
Language
en
Pages
99
Series
Abstract
Global market presence and complex supply networks require increased focus on demand-supply coordination. In this study multisite production allocation logic is developed with the objective to support factory specific capacity planning while at the same time increasing the delivery punctuality of the supply units. The demand-supply network analyzed in the case study includes three supply units and one order coordinating unit responsible for order allocation decision-making. The theoretical input for the developed allocation model includes theories on operations research and management, decision support systems, supply chain management and process improvement. The case study of this thesis is based on the theoretical review with additional information sources including internal company documentation, guidelines, data analysis from factory ERP databases and interviews. The multisite allocation logic is developed by implementation of operations research methods. First, a model of the research problem is created. The correct input for the model is identified through iteration and includes factory and order specific inputs. The model is then solved using three allocation strategies: reduction of movement, production costs and production quality. These allocation strategies are derived from theories covered in the theoretical review and the underlying objectives to improve delivery punctuality while facilitating factory capacity planning for short- and mid-term planning horizons. Historical sales data is used to calculate the factory specific capacity requirements with the developed allocation logic. The robustness of the model solution and its applicability for the real problem is tested using a sensitivity analysis based on aggregate demand fluctuation. This analysis concludes that the allocation logic is robust and can be implemented for the real problem.Description
Supervisor
Lillrank, PaulThesis advisor
Sirviö, ToniKeywords
multisite planning, flerfabriksplanering, capacity planning, kapacitetsplanering, order allocation, produktionsallokering, decision support, stöd för beslutsfattande