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Capable-To-Promise for Segmented Customers in a CapacityConstrained Manufacturing Environment
Linköping University, Department of Management and Engineering. Linköping University, The Institute of Technology.
Linköping University, Department of Management and Engineering, Production Economics . Linköping University, The Institute of Technology.
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Companies operating in environments where demand supersedes production capacity often use some kind of customer segmentation to choose between orders. This calls for the need of methods for creating the best possible allocation of the capacity to different segments or customers, in order to maximize the company´s profit. In their need to fulfil this request, several companies have chosen to utilise the decision support offered by several advanced planning systems vendors, which aims at creating a more profitable utilisation of the resources with regard to the customer segments. The purpose of this study is to analyse the capable-to-promise functionality in a demand fulfilment process concerning segmented customers. A literature study is conducted and a process industry company, with finish to order production, is described and analysed. The company has experienced good results from using an APS’s demand fulfilment functionality. The main findings are the verifications of some theoretically expected benefits, such as customer service level and product mix composition.

Keyword [en]
Advanced planning systems, available to promise, demand fulfilment, customer segmentation, process industry, case study
National Category
Engineering and Technology
URN: urn:nbn:se:liu:diva-63282OAI: diva2:377670
Available from: 2010-12-14 Created: 2010-12-14 Last updated: 2010-12-14Bibliographically approved
In thesis
1. Case studies in Advanced Planning Systems for Tactical Planning in Process Industries
Open this publication in new window or tab >>Case studies in Advanced Planning Systems for Tactical Planning in Process Industries
2010 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis focuses on the use of Advanced Planning System (APSs) in the tactical planning process. In addition, there is a special focus towards process industries. The overall aim is to find out if and how APSs can support the tactical planning processes and add value to the company. A discussion on APSs as such is also presented, as the general definition of APS is unclear.

The study is based on three case studies, first a longitudinal case study at a single company, second a in-depth case study at the same company and last a multiple case study at four Scandinavian companies. The case descriptions provide answers to the overall purpose of the thesis, but they also contribute to the general knowledge concerning APSs, as they describe industrial use of these systems.

The study reveals several improvements that companies have achieved by implementing APSs and it conclude that APSs can support the tactical planning process. The improvements are seen either as results of process changes needed to implement the APS or the APS itself. Among the improvements, centralizing, automatizing and streamlining of the tactical planning processes are three of the most prominent. But several other improvements are also found, for example improvements concerning the customer service level and inventory levels.

Although several successful implementations, it is not uncommon that implementations projects fail, which is why companies need to be careful when deciding to invest in an APS. Factors found to be linked to success concerning APS implementations are discussed, with the APS’s fit to the company’s processes and existing systems along with promotional activities, either by a project champion or the top management, are found to be important.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2010. 38 p.
Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 1460
National Category
Engineering and Technology
urn:nbn:se:liu:diva-62822 (URN)978-91-7393-259-2 (ISBN)
2010-12-22, ACAS, House A,, Campus Valla, Linköping University, Linköping, 12:52 (English)
Available from: 2010-12-14 Created: 2010-12-06 Last updated: 2010-12-14Bibliographically approved

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