Ordering, Pricing, and Lead-Time Quotation Under Lead-Time and Demand Uncertainty

• 成果类型: Article
• 署名作者: Wu, Zhengping; Kazaz, Burak; Webster, Scott; Yang, Kum-Khiong
• 署名单位: Singapore Management University; Syracuse University
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/j.1937-5956.2011.01289.x
• 发表日期: 2012
• 页码: 576-589
• 关键词: Newsvendor problem; pricing; lead-time quotation; inventory; revenue management

摘要

In this article, we study the newsvendor problem with endogenous setting of price and quoted lead-time. This problem can be observed in situations where a firm orders semi-finished product prior to the selling season and customizes the product in response to customer orders during the selling season. The total demand during the selling season and the lead-time required for customization are uncertain. The demand for the product depends not only on the selling price but also on the quoted lead-time. To set the quoted lead-time, the firm has to carefully balance the benefit of increasing demand as the quoted lead-time is reduced against the cost of increased tardiness. Our model enables the firm to determine the optimal selling price, quoted lead-time, and order quantity simultaneously, and provides a new set of insights to managers.