A supplier provides several lead-time options to its customers in a periodic review inventory system. The replenishment lead time is a multiple of the inventory review cycle. Customers are classified into two groups: short lead-time customers requiring the product immediately and long lead-time...

We propose a model where customers are classified into two groups: short lead-time customers who require the product immediately and long lead-time customers to whom the supplier may deliver either immediately or in the next cycle. Unmet orders are backlogged with associated costs. Specifically,...