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Modified critical fractile approach for a class of partial postponement problems

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  • Fu, Qi
  • Lee, Chung-Yee
  • Teo, Chung-Piaw

Abstract

This paper studies a single period partial postponement problem, which is motivated by an inventory planning problem encountered in Reebok NFL replica jersey supply chain. We consider a group of regular products each facing a random demand. There are two stocking options. One is to procure the regular products. The other is to stock a common component which can be customized later to any one of the regular products, after demand realization.

Suggested Citation

  • Fu, Qi & Lee, Chung-Yee & Teo, Chung-Piaw, 2012. "Modified critical fractile approach for a class of partial postponement problems," International Journal of Production Economics, Elsevier, vol. 136(1), pages 185-193.
    • Handle: RePEc:eee:proeco:v:136:y:2012:i:1:p:185-193
    DOI: 10.1016/j.ijpe.2011.11.003
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    References listed on IDEAS

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    1. Tibben-Lembke, Ronald S. & Bassok, Yehuda, 2005. "An inventory model for delayed customization: A hybrid approach," European Journal of Operational Research, Elsevier, vol. 165(3), pages 748-764, September.
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    7. Hau L. Lee & Christopher S. Tang, 1997. "Modelling the Costs and Benefits of Delayed Product Differentiation," Management Science, INFORMS, vol. 43(1), pages 40-53, January.
    8. Qi Fu & Chung-Yee Lee & Chung-Piaw Teo, 2010. "Procurement management using option contracts: random spot price and the portfolio effect," IISE Transactions, Taylor & Francis Journals, vol. 42(11), pages 793-811.
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    Cited by:

    1. Zhang, Juliang & Shou, Biying & Chen, Jian, 2013. "Postponed product differentiation with demand information update," International Journal of Production Economics, Elsevier, vol. 141(2), pages 529-540.
    2. Saghiri, Soroosh S. & Barnes, Stuart J., 2016. "Supplier flexibility and postponement implementation: An empirical analysis," International Journal of Production Economics, Elsevier, vol. 173(C), pages 170-183.

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