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Fundamental behaviour of Virtual-Build-to-Order systems

Brabazon, Philip G.; MacCarthy, Bart L.

Authors

Philip G. Brabazon

Bart L. MacCarthy



Abstract

Virtual-Build-to-Order (VBTO) is an emerging order fulfilment system within the automotive sector that is intended to improve fulfilment performance by taking advantage of integrated information systems. The primary innovation in VBTO systems is the ability to make available all unsold products that are in the production pipeline to all customers. In a conventional system the pipeline is inaccessible and a customer can be fulfilled by a product from stock or having a product Built-to-Order (BTO), whereas in a VBTO system a customer can be fulfilled by a product from stock, by being allocated a product in the pipeline, or by a build-to-order product. Simulation is used to investigate and profile the fundamental behaviour of the basic VBTO system and to compare it to a Conventional system. A predictive relationship is identified, between the proportions of customers fulfilled through each mechanism and the ratio of product variety / pipeline length. The simulations reveal that a VBTO system exhibits inherent behaviour that alters the stock mix and levels, leading to stock levels being higher than in an equivalent conventional system at certain variety / pipeline ratios. The results have implications for the design and management of order fulfilment systems in sectors such as automotive where VBTO is a viable operational model.

Journal Article Type Article
Publication Date Dec 1, 2006
Journal International Journal of Production Economics
Print ISSN 0925-5273
Publisher Elsevier
Peer Reviewed Not Peer Reviewed
Volume 104
Issue 2
APA6 Citation Brabazon, P. G., & MacCarthy, B. L. (2006). Fundamental behaviour of Virtual-Build-to-Order systems. International Journal of Production Economics, 104(2),
Keywords Mass customization, Order fulfillment, Simulation, VBTO
Copyright Statement Copyright information regarding this work can be found at the following address: http://eprints.nottingh.../end_user_agreement.pdf

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Copyright Statement
Copyright information regarding this work can be found at the following address: http://eprints.nottingham.ac.uk/end_user_agreement.pdf





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