Inventory policies for a batch-replenishment supplier with alternative delivery lead-time choices

Haifeng Wang, Houmin Yan

Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 32 - Refereed conference paper (with host publication)peer-review

Abstract

This paper considers an inventory model in which a supplier provides alternative lead-time choices to customers: a short or a long lead time. The supplier operates in a batch-production mode. Orders from slow customers can be taken by the supplier and included in the next production cycle, while orders from fast customers have to be satisfied from the on-hand inventory. This paper denotes the action of providing a short lead-time product to a long lead-time customer as the inventory-commitment decision, and characterizes the optimal inventory-commitment policy. © 2009 IFAC.
Original languageEnglish
Title of host publicationIFAC Proceedings Volumes (IFAC-PapersOnline)
Pages1568-1572
Volume13
DOIs
Publication statusPublished - 2009
Externally publishedYes
Event13th IFAC Symposium on Information Control Problems in Manufacturing (INCOM '09) - Moscow, Russian Federation
Duration: 3 Jun 20095 Jun 2009

Publication series

Name
Volume13
ISSN (Print)1474-6670

Conference

Conference13th IFAC Symposium on Information Control Problems in Manufacturing (INCOM '09)
PlaceRussian Federation
CityMoscow
Period3/06/095/06/09

Research Keywords

  • Batch replenishment
  • Dynamic programming
  • Lead-time flexibility
  • Optimal control
  • Stochastic inventory models

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