Order crossovers

نویسنده

  • Jan Riezebos
چکیده

The control policies that are used in inventory management systems assume that orders arrive in the same sequence as they were ordered. Due to changes in supply chains and markets, this assumption is no longer valid. Therefore, traditional control policies have to be modified in order to be able to manage inventories in case of order crossovers. This paper aims at providing an improved understanding of the phenomenon of order crossovers and the conditions for the occurrence of order crossovers. Order crossovers are caused by differences in lead times and in the time between orders. This paper distinguishes several types of order crossovers according to the source of the differences encountered. It reviews literature on these sources of differences that may cause crossovers. Next, the paper provides a detailed analysis for the case of a tobacco firm that encountered order crossovers. The paper concludes that the type of order crossovers this firm encountered are predominantly expected order crossovers. General order crossovers also occur. Modern ERP systems are not able to handle these types of order crossovers effectively.

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تاریخ انتشار 2004