Influence of order acceptance policies on optimal capacity investment with stochastic customer required lead times
Three order acceptance policies are developed for random customer required lead times. Capacity investment and order acceptance policy parameterization are optimized. Order acceptance possibility leads to lower capacity investment. High service level objectives for order acceptance lead to high costs. Information sharing in supply chains can lead to lower order rates.
order acceptance service level stochastic customer-required lead time queuing theory tardiness operations management