Advanced ATP and Its Application
Michael Ball, Zhenying Zhao, U of Maryland; Yoshinori Shirasu, Masahiro Kotake, Toshiba Corporation
Advanced ATP
Real-Time ATP
•An execution mechanism that allocates and re-allocates
available resources, including raw materials, work-in-process,
finished goods, and even production and distribution capacities,
in response to actual customer orders
•Advanced ATP synchronizes and matches the forecast-based
push and order-driven pull “forces” to lower stock-out, higher
resource utilization and less waste.
Resources:
Customer Orders:
x
Capacity Availability
New Arrived
Material Availability
Production Resource
(Capacity & Materials)
Allocation Mechanism
Resources
Raw Material
Production
Distribution
Pull-based Execution
Demand
Dem
a
Customers
Push-Pull
Boundary
and
Dem
Suppliers
Back-End
Resource
Availability
Previous Promised
Push-based Planning
Two-Stage ATP
• Response and order commitment are given for each customer order
immediately after order receipt based on pre-allocated resource
availability
• Back-end resource availability including material, production
capacity, distribution capacity are required to be pre-allocated into
front-end availability at either SKU level, or options (features)
level, or finished goods level to increase promising speed
Font-End
Availability
hard commitments
to customers
time period t
new
orders
in t
Real
Time
ATP
soft promise
for t
production
schedule
Batch
ATP
A (10), B (15)
C (5), D (5)
Production Capability
Approach
Feature-based
Approach
nd
Finished Goods
MPS-based
Approach
•Customer orders are responded and committed immediately with
initial “soft” order confirmation by real-time ATP then given “hard”
order delivery date after checking more detail resource availability
based on batch ATP.
Hard
commitment
Production Capability
updated front-end availability
PC1 [ A or B] (15)
PC2 [ B] (10)
PC3 [ C or D] (10)
Features or Options
FS1 [base for A or B] (25)
FS2 [base for C or D] (10)
FS3 [A,C add-on] (15)
FS4 [B,D add-on](25)
hard commitments
to customers
time period t+1
new
orders
in t+1
Real
Time
ATP
soft promise
for t+1
updated
production
schedule
Batch
ATP
Flexibilities in ATP Environment
• Customer order flexibility – high profit orders vs. low profit
orders, confirmed orders vs. pseudo orders
• Production flexibility – regular time vs. overtime
• Location flexibility – order splitting and re-pointing
• Transportation flexibility – express mode vs. regular mode
• Resources flexibility – expedite or de-expedite.
delivery
flexibility
X mk (t ) : Delivery indicator (0/1) for order k in delivery mode m
Dmk (t ) : Quantity delivery for order k via mode m in factory f
production
flexibility
•
•
•
Y fk (t ) : Production indictor (0/1) for order k in factory f and time t
: Quantity produced for order k in factory f and time t
• Objective Function
Minimize: revenue + customer service – total cost
• Constraints
9Order promising and fulfillment constraints
Multiple Performance Measures
9Delivery assignment constraints
Customer service level -- Due date violation, loss sales, etc.
9Production assignment constraints
Total revenue – Committed orders times sales price.
9Material conservation
9Production capacity requirements constraints
Total cost – Holding cost, production cost, transportation cost.
9Delivery capacity requirements constraints
Production and transportation smoothness & utilization
9Material substitution and compatibility
location
flexibility
•
MIP Formulation
Applications of Batch ATP in Toshiba
•Data was collected for an electronic product (EP)
9ATP Time Horizon: 9 weeks
9Customer Orders: 4994
9Product Models: 4355
9Available Resources: 765 MOs, 456 PCs with 5-20 candidates
• Major decision variables
Z k (t ) : Order accept or deny indicator (0/1) for order k in time t
confirm
order
pseudo
order
• Customer orders are collected over a predetermined “batching
interval” (e.g., one hour, 8-hour shift, one day) and response and order
commitment are generated for a batch of orders at the end of each
batching interval.
Q kf (t )
Total due date
violation (qty*date)
Total inventory
holding cost (qty*date)
Production quantity
by flexible resources
C-ATP
A-ATP
Differences
429016
351521
-18.1%
1614023
1577228
-2.3%
18439
15797
-14.3%
resource
flexibility
Pareto frontier for
2 objective criteria:
•Single run takes
6 minutes
Total due date violation decrease percentage (%)
order
flexibility
Batch-mode ATP
Due date violation
25
dominated
Inventory weight
increase
20
15
10
Due date weight
increase
5
0
-6
-4
-2
0
2
4
6
8
10
12
-5
-10
Holding cost dominated
-15
-20
Total inventory holding cost decrease percentage (%)
14