Business Faculty Publications
Document Type
Article
Publication Date
2013
Publication Title
International Journal of Production Research
Keywords
Supply Chain Management
Disciplines
Business Administration, Management, and Operations
Abstract
Firms consider a variety of factors when making lead-time promises, including current shop status and the size of the incoming order. The profit-maximising model presented in this paper is the first to include reputation effects explicitly in a lend-time optimisation model. Reputation is considered to be the lasting effect on the market of a firm's delivery performance over time, and so it affects the future as well as the current profits. The model is complicated, and a counter-example demonstrates that qualitative monotonicity results are not obtainable. A computational study explores the relationships between shop status, order size, reputation, market characteristics and the lead-time decision. Regression analysis sheds light on these relationships and suggests three heuristics, which provide near-optimal solutions with relatively short running times.
Recommended Citation
Slotnick, S. A. (2013). Lead-Time Quotation When Customers are Sensitive to Reputation. International Journal of Production Research.
DOI
10.1080/00207543.2013.828176
Version
Postprint
Publisher's Statement
This is an Author’s Accepted Manuscript of an article published in International Journal of Production Research (2013), available online: http://www.tandfonline.com/ 10.1080/00207543.2013.828176
