Order acceptance

How do you ensure that requirements differing from those in the tender are resolved before contract or order acceptance ... 

Available to the public from the National Technical Information Service, U.S. Department of Commerce, 5285 Port Royal Road, Springfield, VA 22161 phone orders accepted at (703) 487-4650. 

The organization reviews the requirements related to the product prior to the organization s commitment to supply a product to the customer (e.g., submission of tenders, acceptance of contracts of orders, acceptance of changes to contracts or orders) to ensure that ... 

Receiving inspection is the first step in the total control program. This generally consists of comparison of what is received to the specification used in developing the purchase order. Acceptance tests on raw materials should be directed toward assurance that the incoming materials are correct and identical from lot to lot. 

In the case of order promising, the demands on this timing change. Here, when completion date and an immediate response is expected. This is a synchronous process. Moreover, as new orders are entered, they need to be promised based on the latest information, including those orders that have just been accepted. Thus, the planning system, upon order acceptance, must immediately reserve materials and capacity so that aJl future promises can reflect the impact of even the most recently accepted orders. 

A procurement manager has access to both capacity within the company as well as capacity at a subcontractor. All orders accepted have to be satisfied per company policy. Thus revenue is fixed, and maximizing profit implies minimizing cost. With each order the manager has to decide how much the company should make and how much it should buy, so as... 

Another part of the demand management decision is made by the planning department. The planning department can maintain some slack in the schedule of orders accepted so that order entry can accept rush orders from preferred customers. 

The paper is organized as follows. In Section 1, we discuss the characteristics of a DDM problem, including decisions, modeling dimensions, objectives and solution approaches. In Section 2, we discuss commonly used scheduling rules in DDM policies. Offline DDM models, which assume that the demand and other input about the problem are available at the beginning of the planning horizon, are discussed in Section 3. Online models, which consider dynamic arrivals of orders over time, are presented in Section 4. Models for DDM in the presence of service level constraints are discussed in Section 5. We review the DDM models with order acceptance and pricing decisions in Section 6. We conclude with future research directions in Section 7. 

When order acceptance decisions are assumed to be exogenous, the key decisions are due date setting and scheduling. Note that these decisions have... 

The objective functions discussed above take a cost minimization perspective and are appropriate when the jobs to be served are exogenously determined. When order acceptance is also a decision (or equivalently, if the demand depends on quoted lead times), then the objective is to maximize profit ... 

Chamsirisakskul et al. [16] take a profit-maximization rather than a cost-minimization perspective and consider order acceptance in addition to scheduling and due-date setting decisions. In their model, an order is specified by a unit revenue, arrival time, processing time, tardiness penalty, and preferred and latest acceptable due dates. While they allow preemption, they assume that the entire order has to be sent to a customer in one shipment, i.e., pieces of an order... 

Another study that considers DDM with 100% service guarantee is [65]. In addition to due date setting and scheduling, the authors consider order acceptance decisions and take a profit maximization perspective hence, their model and results are discussed in Section 6.1. Other papers that consider service level constraints along with pricing decisions in DDM include [75] and [97], which are discussed in Section 6.2. 

Lead-time/due-date guarantees have undoubtedly been among the most prominent factors determining the service quality of a firm. The importance of due date decisions, and their coordination with scheduling, pricing and other related order acceptance/fulfillment decisions has increased further in recent years with the increasing popularity of make-to-order (MTO) over make-to-stock (MTS) environments. 

Calosso, T., M. Cantamessa, D. Vu and A. Villa, 2003. Production planning and order acceptance in business to business electronic commerce. International Journal of Production Economics 85,233-249. 

I Assistant Administrator who may accept it, reject it and direct that proceedings in the case continue, or take such other action as he/she deems appropriate. If the Assistant Administrator accepts the agreement, he/she wiU enter an order in accordance with its terms. The settlement agreement becomes the Final Agency Order as of the date the Assistant Administrator enters an order accepting the settlement agreement. 

Retailers have been known to cancel their orders near the winter season as they have better visibility into expected demand. How many orders should the supplier accept if cancellations are normally distributed, with a mean of 800 and a standard deviation of 400 How many orders should the supplier accept if cancellations are normally distributed, with a mean of 15 percent of the orders accepted and a coefficient of variation of 0.5 ... 

Control rules for lead times and order acceptance... 

Only very simple decision rules will be used for the lead times and the order acceptance. We shall not consider any rules for making agreements about fixed lead times. In the situations in which we have fixed lead times we assume that we have different groups of clients and that every group obtains a different fixed lead time, according to an agreement that was made beforehand. 

---