October  2005, 1(4): 513-531. doi: 10.3934/jimo.2005.1.513

Information Updated Supply Chain with Service-Level Constraints

1. 

School of Management, The University of Texas at Dallas, Richardson, TX, 75083-0688, United States

2. 

Dept. of Systems Engineering and Engineering Management, The Chinese University of Hong Kong, Shatin, N.T. Hong Kong, China

3. 

Institute of Applied Mathematics, Academy of Mathematics and Systems Science, Academia Sinica, Beijing, 100080

Received  September 2005 Revised  October 2005 Published  October 2005

We study a single-period two-stage service-constrained supply chain with an information update. The buyer has two purchasing instances: before and after the forecast update. The procurement cost at the second stage is uncertain at the first stage. We determine the optimal ordering policy with two service constraints (a service constraint is imposed for each procurement stage) and discuss the impact of the forecast quality. Finally, we extend our model to a multi-period problem with two ordering stages in each period.
Citation: Suresh P. Sethi, Houmin Yan, Hanqin Zhang, Jing Zhou. Information Updated Supply Chain with Service-Level Constraints. Journal of Industrial and Management Optimization, 2005, 1 (4) : 513-531. doi: 10.3934/jimo.2005.1.513
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