Journal of Japan Industrial Management Association
Online ISSN : 2432-9983
Print ISSN : 0386-4812
A Sales Order Planning System that Ensures Design Flexibility in Products
Heihachiro FUKUDAHirofumi FUKUDA
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1994 Volume 45 Issue 4 Pages 317-324

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Abstract
Most conventional studies on sales planning in a job shop type production system were concerned with the order selection for products that have an essentially identical pattern with those in the past. The current paper, however, focuses on innovative products with an inherent flexibility in design, and proposes a new system in which the plan unit is referred to as "Sales Orders Based on Search Activities for Upgraded Products" in a flow type job shop. There are three major proposals made here : 1.A sales order production model is configured in considerations of the customer's demands requirements for higher product value and earlier delivery. 2. A periodic profit is established within this model, based on the capability to control product orders. Of particular importance is to grasp the periodic fixed costs including costs of R & D of the ordered product as a controllable variable for profit goals. 3. After establishing this, the paper then clarifies the mechanism required to form the goals for the periodic profits for ordered products based on the concept of relative annual profit.
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© 1994 Japan Industrial Management Association
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