International Journal of Production Research
Supply Chain Management
Business Administration, Management, and Operations
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.
Slotnick, S. A. (2013). Lead-Time Quotation When Customers are Sensitive to Reputation. International Journal of Production Research.
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