Order promising model with random demand and supply

This paper studies the order promising problems that frequently arise in EMS-OEM scenario with multiple demand classes. Demands and replenishment of inventory in different periods are assumed to be random variables and independent of one another. An order promising system is designed to maximize the expected net profit over the planning horizon by determining the fraction of the demand that is likely to be fulfilled from the inventory and the delivery date. The expected future replenishments are included to deal with incoming orders and order acceptance and delivery dates are determined as appropriate. Finally, computational experiments are used to illustrate the effectiveness and efficiency of the proposed approaches, and evaluate the applicability of the proposed models.