The effect of commonality on safety stock in a simple inventory model
Management Science
Component commonality with service level requirements
Management Science
Power approximation for computing (s,S) policies using service level
Management Science
Quick response in manufacturer-retailer channels
Management Science - Special issue on frontier research in manufacturing and logistics
The Quantity Flexibility Contract and Supplier-Customer Incentives
Management Science
Coordinating Production and Delivery Under a (z, Z)-Type Vendor-Managed Inventory Contract
Manufacturing & Service Operations Management
Serial Production/Distribution Systems Under Service Constraints
Manufacturing & Service Operations Management
The Censored Newsvendor and the Optimal Acquisition of Information
Operations Research
On the Complementary Value of Accurate Demand Information and Production and Supplier Flexibility
Manufacturing & Service Operations Management
An Empirical Study of Service Differentiation for Weapon System Service Parts
Operations Research
Fill Rates of Single-Stage and Multistage Supply Systems
Manufacturing & Service Operations Management
Manufacturing & Service Operations Management
Operations Research
Measuring Item Fill-Rate Performance in a Finite Horizon
Manufacturing & Service Operations Management
A Closed-Form Approximation for Serial Inventory Systems and Its Application to System Design
Manufacturing & Service Operations Management
A Multiperiod Newsvendor Problem with Partially Observed Demand
Mathematics of Operations Research
Analysis of Perishable-Inventory Systems with Censored Demand Data
Operations Research
Impact of Supply Learning When Suppliers Are Unreliable
Manufacturing & Service Operations Management
On the single item fill rate for a finite horizon
Operations Research Letters
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We deal with the problem of a profit-maximizing vendor selling a perishable product. At the beginning of a planning cycle, the vendor determines a minimum committed order per period. During the cycle, he may also place a supplemental order in each period based on the observed demand signal in that period. Moreover, the vendor is committed to a specific service target evaluated over the planning cycle. This is a complex problem, and we, as an approximation, offer a single-period, two-stage modeling approach. Under this approach, the vendor determines a first-stage order as the minimum committed order with the possibility of supplementing it based on a demand signal observed at the second stage. The problem is to maximize his expected profit subject to a constraint on his overall service performance across all possible values of the demand signal. We characterize the optimal policy for in-stock rate and fill-rate targets, and make comparisons. Whereas in the classical newsvendor model a service target can be replaced by a single unit shortage cost, it is not so in our model. Instead, a set of unit shortage costs are imputed---one for each demand signal. The imputed shortage costs reflect trade-offs among the profits under different demand signals in meeting the service targets. We also show that under a given ordering policy, the in-stock rate is lower (higher) than the fill rate when the demand has an increasing (decreasing) hazard rate. This result suggests that the vendor can infer a fill-rate measure from the corresponding in-stock rate without the difficult task of tracking lost sales. Furthermore, we analyze how the order quantity varies according to the observed signal, which allows us to formalize the notion of a valuable demand signal.