IMPACT OF MANUFACTURING OVERHEAD ON ORDER MANAGEMENTIN A TWO-LEVEL SUPPLY CHAIN

摘要

The increased focus of firms on their supply chains has changed the nature of overhead costs as a percentage of total manufacturing costs at the same time labor content is diminishing due to increased outsourcing. In this study we evaluate the impact of overhead cost structure on the order management process in terms of profitability and service levels. Specifically, we consider the impact on real-time order management in an assemble-to-order environment for a two-level supply chain using a commercially available Advanced Planning System (APS).