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Motivated by a $2.2 billion inventory write-off by Cisco Systems, we investigate how duplicate orders can lead a manufacturer to err in estimating the demand rate and customers' sensitivity to delay, and to make faulty decisions about capacity investment. We consider a manufacturer that sells...
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This study illustrates how a manufacturer can use leadtime differentiation- selling the same product to different customers at different prices based on delivery leadtime- to simultaneously increase revenue and reduce capacity requirements. The manufacturer's production facility is modeled by...
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Consider a production system which rapidly assembles many different products from inventories of modular components. Customer orders for each product arrive according to a renewal process with known rate and variance. Orders are lost if not filled within the product-specific target leadtime....
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This paper considers two firms that engage in joint production. The prospect of repeated interaction introduces dynamics in that actions that firms take today influence the costliness and effectiveness of actions in the future. Repeated interaction also facilitates the use of informal agreements...
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