Optimal firm's policy under lead time-and price-dependent demand: interest of customers rejection policy

Abduh Sayid, Yannick Frein and Ramzi Hammami
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Abduh Sayid: G-SCOP\_GCSP
Yannick Frein: G-SCOP\_GCSP

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Abstract: Considering a lead-time-and price-sensitive demand, we investigate whether a client rejection policy, modeled as M/M/1/K system, can be more profitable than an all-client acceptance policy, modeled as M/M/1 system. We provide analytical insights for the cases with and without holding and penalty costs by comparing M/M/1/1 to M/M/1 models.

Date: 2017-08
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Published in POMS 27th Annual Conference, May 2016, Orlando, Florida, United States

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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:1708.07305

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