Early versus delayed order commitments in multi-retailer inventory systems

Date

2007-12-01

Author

Bakal, İsmail Serdar
Geunes, Joseph

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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We consider the implications of order commitment policies in terms of expected profits under demand uncertainty. Specifically, we investigate a system with multiple retailers and a single supplier in a single period context where one of the retailers is the primary customer of the supplier. In the base model, the primary customer orders after observing demand, and the supplier rations its production to retailers. In the early commitment model, the primary retailer orders before the selling season and receives her order in full. Comparing the multi-retailer system with a single-retailer model, we highlight the differences in the supply chain members' preferences.

Subject Keywords

Inventory allocation, Newsvendor model, Order commitment

URI

https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=44949204436&origin=inward
https://hdl.handle.net/11511/102277

Conference Name

IIE Annual Conference and Expo 2007 - Industrial Engineering's Critical Role in a Flat World

Collections

Department of Industrial Engineering, Conference / Seminar

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Citation Formats

İ. S. Bakal and J. Geunes, “Early versus delayed order commitments in multi-retailer inventory systems,” presented at the IIE Annual Conference and Expo 2007 - Industrial Engineering’s Critical Role in a Flat World, Nashville, TN, Amerika Birleşik Devletleri, 2007, Accessed: 00, 2023. [Online]. Available: https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=44949204436&origin=inward.