Customer order penetration point within a newsvendor framework

Publish Year: 1389
نوع سند: مقاله کنفرانسی
زبان: English
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شناسه ملی سند علمی:

IIEC07_023

تاریخ نمایه سازی: 7 خرداد 1389

Abstract:

We consider a multi-product manufacturer within a newsvendor framework in which he orders semi-finished products to a supplier and customize the semi-finished products due to the specific customer orders. The manufacturer wishes to determine the fraction of processing performed by the supplier and its optimal semi-finished product order size for each product type. In order to make the problem more practical, capacity and budget constraints are considered. The computability of the presented model is explored by a numerical example with Poisson arrival demands.

Keywords:

Make to stock (MTS) policy , Make to order (MTO) policy , Customer order penetration point (COPP) , Newsvendor problem

Authors

Iman Ghaleh Khondabi

Department of Engineering, Shahed University

Abbas Hajfathaliha

Department of Engineering, Shahed University

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