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Peter Nielsen, Ngoc Anh Dung Do, Thomas Eriksen and Izabela Nielsen

Abstract

This paper presents an analysis methodology for establishing the demand stability of the planning environment faced by a company and the impact on the stability from changes to sales order. The methodology focuses on three critical planning parameters derived from customer orders: product mix, volume, and order sizes. Furthermore, the methodology links the delivery performance of a company to the changes made to sales orders. Based on a test case application of the methodology, it is concluded that by accepting changes, the demand faced by the case company has become more unstable on product mix, volume, and the number of order lines per period, while some added stability has been achieved with regards to the order size distributions. Ultimately, by applying the methodology to the case company, it is found that by changing the sales orders, the company does not improve the delivery performance.

Open access

Peter Nielsen, Zbigniew Michna, Brian Bruhn Sørensen and Ngoc Do Anh Dung

Abstract

Lead times and their nature have received limited interest in literature despite their large impact on the performance and the management of supply chains. This paper presents a method and a case implementation of the same, to establish the behavior of real lead times in supply chains. The paper explores the behavior of lead times and illustrates how in one particular case they can and should be considered to be independent and identically distributed (i.i.d.). The conclusion is also that the stochastic nature of the lead times contributes more to lead time demand variance than demand variance.