Employing more than one supplier and splitting orders between them is a strategy employed in supply chains to lessen the lead-time risk in unstable environments. In this paper we present a multiple-sourcing inventory system with stochastic lead-times and constant demand controlled by a continuous review, reorder point-order quantity inventory policy. We consider the situation in which the order...

In today’s competitive business environment, quick service with minimal waiting time is an important factor for customers when choosing a service. Many service organizations guarantee a uniform lead-time to all customers in order to gain competitive advantages in the market. In selecting a lead-time to quote, the firm has to take into consideration not only how customers will react to the deliv...

In this paper, we model an operating system consisting of a firm and its customers, where the mean demand rate is a function of the guaranteed delivery time offered to the customers and of market price, where price itself is determined by the length of the delivery time. Economies of scale are present. The firm s objective is to maximize profits by selecting an optimal guaranteed delivery time ...