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Article

A Model for Demand Planning in Supply Chains with Congestion Effects

1
Department of Industrial Engineering, Dalhousie University, Halifax, NC B3H 4R3, Canada
2
Michael Kors Hong Kong, Hong Kong, China
3
Marshall School of Business, University of Southern California, Los Angeles, CA 90089, USA
*
Author to whom correspondence should be addressed.
Received: 4 December 2020 / Revised: 23 December 2020 / Accepted: 28 December 2020 / Published: 6 January 2021
(This article belongs to the Section Supplier, Government and Procurement Logistics)
This paper is concerned with demand planning for internal supply chains consisting of workstations, production facilities, warehouses, and transportation links. We address the issue of how to help a supplier firmly accept orders and subsequently plan to fulfill demand. We first formulate a linear aggregate planning model for demand management that incorporates elements of order promising, recipe run constraints, and capacity limitations. Using several scenarios, we discuss the use of the model in demand planning and capacity planning to help a supplier firmly respond to requests for quotations. We extend the model to incorporate congestion effects at assembly and blending nodes using clearing functions; the resulting model is nonlinear. We develop and test two algorithms to solve the nonlinear model: one based on inner approximation and the other on outer approximation. View Full-Text
Keywords: supply chain management; demand planning; order promising; capacity planning; enterprise resource planning; clearing functions supply chain management; demand planning; order promising; capacity planning; enterprise resource planning; clearing functions
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MDPI and ACS Style

Venkatadri, U.; Wang, S.; Srinivasan, A. A Model for Demand Planning in Supply Chains with Congestion Effects. Logistics 2021, 5, 3. https://0-doi-org.brum.beds.ac.uk/10.3390/logistics5010003

AMA Style

Venkatadri U, Wang S, Srinivasan A. A Model for Demand Planning in Supply Chains with Congestion Effects. Logistics. 2021; 5(1):3. https://0-doi-org.brum.beds.ac.uk/10.3390/logistics5010003

Chicago/Turabian Style

Venkatadri, Uday, Shentao Wang, and Ashok Srinivasan. 2021. "A Model for Demand Planning in Supply Chains with Congestion Effects" Logistics 5, no. 1: 3. https://0-doi-org.brum.beds.ac.uk/10.3390/logistics5010003

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