We generalize the guaranteed-service (GS) model for multi-echelon safety stock placement to include capacity constraints. We first develop an extension of the single-stage base-stock model to include a capacity constraint. We then use this result to model a multi-stage system with a base-stock operating policy. We establish that we can adapt the existing algorithms for the unconstrained case to...

This paper is concerned with the theory of saving when consumers are not permitted to borrow, and with the ability of such a theory to account for some of the stylized facts of saving behavior. When consumers are relatively impatient, and when labor income is independently and identically distributed over time, assets act like a buffer stock, protecting consumption against bad draws of income. ...

In 2007, Intel’s Channel Supply Demand Operations launched an initiative to improve its supply chain performance. To ensure success, the process had to fit within the existing planning processes. In practice, this meant that setting service-level and inventory targets, which had previously been external inputs to the process, had to become part of the structured decision-making process. Althoug...

This paper uses the Panel Study of Income Dynamics to provide some of the first direct evidence that wealth is systematically higher for consumers with predictably greater income uncertainty. However, the apparent pattern of precautionary wealth is not consistent with a standard parameterization of the life cycle model in which consumers are patient enough to begin saving for retirement early i...

The business performance and economic profit of the firm can be summarized in market share. One of the most important aims of firms is to enhance market share to achieve greater scale in its operations and improve profitability. Due to this, managers always want to expand their market share. Market share responds to elements of marketing strategy and one of the important items that affect marke...

Recognizing the value of information sharing among supply chain partners, a growing number of firms have expressed keen interest in jointly creating customer demand, managing business functions and leveraging the strength of their supply chain partners. In particular, such interest sparked the rapid development and implementation of collaborative planning, forecasting and replenishment (CPFR) t...

Although revenue management (RM) originates from service industries, its ideas are also relevant for manufacturing environment. In this paper, we consider RM approaches for demand fulfillment in a make-to-stock (MTS) production system with known exogenous replenishments and stochastic demand from multiple customer classes. We propose a safety margin model which borrows the “safety stock” idea f...

We identify a new class of problems and their common features – the recurrent projects with random material delays. Recurrent projects are those similar in schedule and material requirements. We present the model of project-driven supply chain (PDSC) to jointly optimize safety-stock decisions in the material supply chain and the crashing decisions in the projects. We exemplify the problem, the ...