Near-Optimal Dynamic Lead-Time Quotation and Scheduling under Convex-Concave Customer Delay Costs

Show simple item record Ata, B en Olsen, Tava en 2011-11-09T00:26:30Z en 2009-05 en
dc.identifier.citation Operations Research 57(3):753-768 May 2009 en
dc.identifier.issn 0030-364X en
dc.identifier.uri en
dc.description.abstract We consider a make-to-order system where customers are dynamically quoted lead times (and prices). Customers are homogeneous but have general (nonlinear) disutility for delay. Because the firm is a monopolist, the pricing problem is trivial and the dynamic problem reduces to one of lead-time quotation and order sequencing. We also consider the (static) problem of up-front capacity installation. We use a large-capacity asymptotic regime to make the problem tractable. We provide recommended policies for convex, concave, and convex-concave lead-time cost functions and prove that these policies are asymptotically optimal. The policies are both highly intuitive and readily implementable. Moreover, they provide delay guarantees for all served customers. They are tested numerically; we find that significant benefits can accrue by using the prescribed dynamic policies instead of first-come-first-served type policies. en
dc.description.uri en
dc.language EN en
dc.publisher INFORMS en
dc.relation.ispartofseries Operations Research en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. Details obtained from en
dc.rights.uri en
dc.subject Statistical Decision Theory; Operations Research C440 en
dc.subject Organization of Production L230 en
dc.subject Production Management M110 en
dc.title Near-Optimal Dynamic Lead-Time Quotation and Scheduling under Convex-Concave Customer Delay Costs en
dc.type Journal Article en
dc.identifier.doi 10.1287/opre.1080.0608 en
pubs.issue 3 en
pubs.begin-page 753 en
pubs.volume 57 en
dc.rights.holder Copyright: INFORMS en en
pubs.end-page 768 en
dc.rights.accessrights en
pubs.subtype Article en
pubs.elements-id 167873 en Business and Economics en Faculty of Bus. & Eco Admin en Faculty of Bus. & Eco Admin en
dc.identifier.eissn 1526-5463 en
pubs.record-created-at-source-date 2010-10-28 en

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