Demand and Production Management with Uniform Guaranteed Lead Time
نویسندگان
چکیده
Recently, innovation-oriented firms have been competing along dimensions other than price lead time being one such dimension. Increasingly, customers are favoring lead time guarantees as a means to hedge supply chain risks. For a maketo-order environment, we explicitly model the impact of a lead time guarantee on customer demands and production planning. We study how a firm can integrate demand and production decisions to optimize expected profits by quoting a uniform guaranteed maximum lead time to all customers. Our analysis highlights the
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