Order Promising Process Optimization for Hybrid Production Strategy

The increased customization of products obliges many companies to adopt hybrid production strategy (HPS) combining make-to-stock (MTS) and make-to-order (MTO) products. Research for the order promising process in HPS is very scarce. This paper proposes a novel MILP model to support the process of committing orders including MTO and MTS products. With scarce availability of resources, companies may be interested in accepting only order proposals ensuring a minimum profit. For that, the model checks and synchronize three levels of availability to promise both type of MTS and MTO products: ATP (Available-To-Promise), CTP (Capable-To-Promise) and PTP (Profitable-To-Promise). The model validation demonstrates its usefulness in environments with tight supply and shortages.