Optimization and Customer Utilities under Dynamic Lead Time Quotation in an MM Type Base Stock System
Joint Authors
Source
Mathematical Problems in Engineering
Issue
Vol. 2017, Issue 2017 (31 Dec. 2017), pp.1-10, 10 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2017-05-25
Country of Publication
Egypt
No. of Pages
10
Main Subjects
Abstract EN
In a manufacturing and inventory system, information on production and order lead time helps consumers’ decision whether they receive finished products or not by considering their own impatience on waiting time.
In Savaşaneril et al.
(2010), the optimal dynamic lead time quotation policy in a one-stage production and inventory system with a base stock policy for maximizing the system’s profit and its properties are discussed.
In this system, each arriving customer decides whether he/she enters the system based on the quoted lead time informed by the system.
On the other hand, the customer’s utility may be small under the optimal quoted lead time policy because the actual lead time may be longer than the quoted lead time.
We use a utility function with respect to benefit of receiving products and waiting time and propose several kinds of heuristic lead time quotation policies.
These are compared with optimal policies with respect to both profits and customer’s utilities.
Through numerical examples some kinds of heuristic policies have better expected utilities of customers than the optimal quoted lead time policy maximizing system’s profits.
American Psychological Association (APA)
Nakade, Koichi& Niwa, Hiroki. 2017. Optimization and Customer Utilities under Dynamic Lead Time Quotation in an MM Type Base Stock System. Mathematical Problems in Engineering،Vol. 2017, no. 2017, pp.1-10.
https://search.emarefa.net/detail/BIM-1190798
Modern Language Association (MLA)
Nakade, Koichi& Niwa, Hiroki. Optimization and Customer Utilities under Dynamic Lead Time Quotation in an MM Type Base Stock System. Mathematical Problems in Engineering No. 2017 (2017), pp.1-10.
https://search.emarefa.net/detail/BIM-1190798
American Medical Association (AMA)
Nakade, Koichi& Niwa, Hiroki. Optimization and Customer Utilities under Dynamic Lead Time Quotation in an MM Type Base Stock System. Mathematical Problems in Engineering. 2017. Vol. 2017, no. 2017, pp.1-10.
https://search.emarefa.net/detail/BIM-1190798
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1190798