Details

Title

Order Quantity Distributions: Estimating an Adequate Aggregation Horizon

Journal title

Management and Production Engineering Review

Yearbook

2016

Numer

No 3

Publication authors

Keywords

Management of Technology and Innovation ; Management Science and Operations Research ; Industrial and Manufacturing Engineering ; Business and International Management ; Organizational Behavior and Human Resource Management

Divisions of PAS

Nauki Techniczne

Abstract

<jats:title>Abstract</jats:title><jats:p>In this paper an investigation into the demand, faced by a company in the form of customer orders, is performed both from an explorative numerical and analytical perspective. The aim of the research is to establish the behavior of customer orders in first-come-first-serve (FCFS) systems and the impact of order quantity variation on the planning environment. A discussion of assumptions regarding demand from various planning and control perspectives underlines that most planning methods are based on the assumption that demand in the form of customer orders are independently identically distributed and stem from symmetrical distributions. To investigate and illustrate the need to aggregate demand to live up to these assumptions, a simple methodological framework to investigate the validity of the assumptions and for analyzing the behavior of orders is developed. The paper also presents an analytical approach to identify the aggregation horizon needed to achieve a stable demand. Furthermore, a case study application of the presented framework is presented and concluded on.</jats:p>

Publisher

Production Engineering Committee of the Polish Academy of Sciences, Polish Association for Production Management

Date

2016

Identifier

ISSN 2080-8208 ; eISSN 2082-1344

DOI

10.1515/mper-2016-0024

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