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This paper addresses the problem of aligning demand and supply in configure-to-order systems. Using stochastic programming methods, this study demonstrates the value of accounting for the uncertainty associated with how orders are configured. We also demonstrate the value of component supply...
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We consider the issue of call center scheduling in an environment where arrivals rates are highly variable, aggregate volumes are uncertain, and the call center is subject to a global service level constraint. This paper is motivated by work with a provider of outsourced technical support...
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We address the problem of rationing common components among multiple products in a configure-to-order system with order configuration uncertainty. The objective of this problem is to maximize expected revenue by implementing a threshold rationing policy. Under this policy, a product is available...
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We use exponential lead times to demonstrate that reducing mean lead time has a secondary reduction of the variance due to order crossover. The net effect is that of reducing the inventory cost, and if the reduction in inventory cost overrides the investment in lead time reduction, then the lead...
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