On Production and Subcontracting Strategies for Manufacturers with Limited Capacity and Backlog-Dependent Demand
We study a manufacturing firm that builds a product to stock to meet a random demand. If there is a positive surplus of finished goods, the customers make their purchases without delay and leave. If there is a backlog, the customers are sensitive to the quoted lead time and some choose not to order...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | en_US |
| Published: |
Massachusetts Institute of Technology, Operations Research Center
2004
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| Online Access: | http://hdl.handle.net/1721.1/5315 |