A Study on MTO Online Manufacturers’ Guaranteed Delivery Time Model with Order Batching
Liu Lei
Wang Yun-sheng
Zhu Qiang-gang
Abstract：For make-to-order ( MTO) on-line manufacturers , one of the most popular time-based competi-tive strategies is to widely advertise a uniform delivery time “guarantee” to all the customers .While provi-ding time guarantee can be an effective marketing approach , it is critical for firms to reduce lead time to keep the promise .Decreasing lot size in batching is one of the most important levers to compress lead time in operations.An online manufacturers ’ guaranteed delivery time model with order batching is estab-lished.The effects of batch processing setup cost , unit inventory holding cost , and unit compression cost of transportation time are analyzed .Some analytic results are provided , and numerical examples are conduc-ted to provide further insight into the problem .The results indicate that when batch processing setup cost , unit inventory holding cost , or unit compression cost of transportation time increase , the online manufactur-er should decrease the lot size and shorten the guaranteed delivery time .
Keywords：online manufacturersguaranteed delivery timeproduction lead timetransportation lead time
Publication Date：2014-01-01
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：5( 13-17 )