Dynamic programming: deterministic and stochastic models
Dynamic programming: deterministic and stochastic models
Due-date setting and priority sequencing in a multiclass M/G.1 queue
Management Science
A single machine model for determination of optimal due dates and sequence
Operations Research
The role of inventory in delivery-time competition
Management Science
Average optimality in dynamic programming with general state space
Mathematics of Operations Research
A broader view of the job-shop scheduling problem
Management Science
Single facility due date setting with multiple customer classes
Management Science
Management Science
Manufacturing & Service Operations Management
Dynamic Lead-Time Quotation for an M/M/1 Base-Stock Inventory Queue
Operations Research
Editorial: How to Monetize the Value of OR
Interfaces
Queueing Systems: Theory and Applications
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We study a finite-horizon discrete-time model of due-date setting (equivalently, reserving capacity) in a make-to-order setting, where demands arrive from two different classes of customers. Demands in each period are stochastic. The two customer classes penalize with different margins the lead times quoted to them, which (once quoted) are to be satisfied reliably. We first derive the optimal policy for reserving capacity that maps to quoted due dates. We use the insights from its structure to develop a novel approximation that provides near-optimal solutions quickly. Currently available heuristics are tested and are found to be considerably less effective than the above approximation.