Price discounts in exchange for reduced customer demand variability and applications to advance demand information acquisition

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Price discounts in exchange for reduced customer demand variability and applications to advance demand information acquisition

We consider a supplier and a customer operating under a service agreement that requires the supplier to cover the random customer demand with high probability. To fulfill the service agreement, the supplier carries a certain amount of safety stock. The customer has some bearing on its demand variability, possibly through activities such as acquiring advance demand information, employing more so...

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ژورنال

عنوان ژورنال: International Journal of Production Economics

سال: 2008

ISSN: 0925-5273

DOI: 10.1016/j.ijpe.2007.02.029