Simulating Order Fulfillment with Product Substitutions in an Assemble-to-Order Supply Chain

In today’s competitive and dynamic business environment, companies need to continually evaluate the effectiveness of their supply chain and look for ways to transform business processes to achieve superior customer service and higher profitability. In this paper we propose a novel availability management process called Available-to-Sell (ATS) that incorporates demand shaping and profitable demand response to drive better operational efficiency through improved synchronization of supply and demand. We develop an order fulfillment simulation model to assess how the proposed availability management system affects supply chain performance, and apply the model in a server computer manufacturing environment. The simulation plays an important role in making strategic business decisions that impact customer service, revenue and profitability.

By: Thomas R. Ervolina; Markus Ettl; Young M. Lee; Daniel J. Peters

Published in: RC23975 in 2006


This Research Report is available. This report has been submitted for publication outside of IBM and will probably be copyrighted if accepted for publication. It has been issued as a Research Report for early dissemination of its contents. In view of the transfer of copyright to the outside publisher, its distribution outside of IBM prior to publication should be limited to peer communications and specific requests. After outside publication, requests should be filled only by reprints or legally obtained copies of the article (e.g., payment of royalties). I have read and understand this notice and am a member of the scientific community outside or inside of IBM seeking a single copy only.


Questions about this service can be mailed to .