Customer order penetration point within a newsvendor framework

We consider a multi-product manufacturer within a newsvendor framework in which he orders semi-finished products to a supplier and customize the semi-finished products due to the specific customer orders. The manufacturer wishes to determine the fraction of processing performed by the supplier and its optimal semi-finished product order size for each product type. In order to make the problem more practical, capacity and budget constraints are considered. The computability of the presented model is explored by a numerical example with Poisson arrival demands.

کلیدواژه ها:

Make to stock (MTS) policy ، Make to order (MTO) policy ، Customer order penetration point (COPP) ، Newsvendor problem