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Case Study: the order from this prospective customer. Finally, there might even be an opportunity to charge a premium for a new order by repurposive previously committed inventory to satisfy this new order while delaying an already committed order. Of course, such decisions should be based on the cost-benefit analyses of delaying a previous order. The system should thus be able to pull real-time data about inventory, committed orders, incoming raw material, production constraints, and so on. To support these ATP decisions, a real-time DSS was developed to find an optimal assignment of the available inventory and to support additional what-if analysis. The DSS uses a suite of mixed-integer programming models that are solved using commercial software. The company has incorporated the DSS into its enterprise resource planning system to seamlessly facilitate its use of business analytics.
Questions
1. Why would reallocation of inventory from one customer to another be a major issue for discussion?
2. How could a DSS help make these decisions?
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