Application Case 1.5: A Specialty Steel Bar Company Uses Analytics to Determine Available-
to-Promise Dates
1.
Why would reallocation of inventory from one customer to another be a major issue for
discussion?
Reallocating inventory from one customer to another poses a significant issue because it involves
complex considerations like customer commitments, production constraints, and cost
implications. It can affect existing orders, potentially leading to customer dissatisfaction or
financial penalties. It requires balancing the needs of new customers with the commitments made
to existing ones, requiring careful evaluation and decision-making.
2.
How could a DSS help make these decisions?
A Decision Support System (DSS) is valuable in making these decisions as it leverages real-time
data and optimization algorithms to find the most efficient allocation of resources. It enables
scenario analysis and ensures making informed decisions while maintaining transparency and
traceability, ultimately optimizing resource allocation for the company's benefit.
