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The first research towards defining order fulfilment strategies was published by Hans Wortmann, [1] and was continued by Hal Mather [2] in his discussion of the P:D ratio, whereby P is defined as the production lead time, i.e. how long it takes to manufacture a product, and D is the demand lead time.
A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product. A supply chain encompasses everything from the delivery of source materials from the supplier to the manufacturer through to its eventual delivery to the end user.
One example of a service rate measures the number of units filled as a percentage of the total ordered and is known as fill rate. Fill rate is different from service level. If a customer orders 1000 units, and their supplier can only provide 900 units of that order, their fill rate is 90%. In statistics, notably in queuing theory, service rate ...
Fillrate or fill rate can refer to: Fillrate, a measure of graphics performance; Service rate, a logistics measure of ordering performance;
To determine the confirmed line item performance two "virtual" quantities are introduced: the virtually committed order and the virtual delivery. The virtually committed order for a product p consists of the actual order for the considered delivery week (DW) plus any backlog of this product accumulated up to that week.
Material theory (or more formally the mathematical theory of inventory and production) is the sub-specialty within operations research and operations management that is concerned with the design of production/inventory systems to minimize costs: it studies the decisions faced by firms and the military in connection with manufacturing, warehousing, supply chains, spare part allocation and so on ...
Demand for items from inventory is continuous and at a constant rate; Production runs to replenish inventory are made at regular intervals; During a production run, the production of items is continuous and at a constant rate; Production set-up/ordering cost is fixed (independent of quantity produced) The lead time is fixed
Typically, supply-chain managers aim to maximize the profitable operation of their manufacturing and distribution supply chain. This could include measures like maximizing gross margin return on inventory invested (balancing the cost of inventory at all points in the supply chain with availability to the customer), minimizing total operating expenses (transportation, inventory and ...