Single-period stochastic demand fulfillment in customer hierarchies

Fleischmann, Moritz ; Kloos, Konstantin ; Nouri, Maryam ; Pibernik, Richard

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Document Type: Article
Year of publication: 2020
The title of a journal, publication series: European Journal of Operational Research : EJOR
Volume: 286
Issue number: 1
Page range: 250-266
Place of publication: Amsterdam [u.a.]
Publishing house: Elsevier
ISSN: 0377-2217
Publication language: English
Institution: Business School > ABWL u. Logistik (Fleischmann 2009-)
Subject: 330 Economics
Keywords (English): Supply chain management Demand fulfillment Customer hierarchy Demand uncertainty Supply scarcity
Abstract: To maximize profits, given limited resources, companies commonly divide their overall customer base into different segments and use allocation policies to prioritize the most important segments. Determining the optimal allocations is challenging due to supply lead times and uncertain demand. Another challenge is the multilevel hierarchical structure of the customer segments. In general, available quotas are not determined by a central planner with full visibility of all individual customer segments but rather result from a sequence of allocation steps with an increasing level of granularity. In this paper, we investigate this sequential allocation process. Specifically, we identify crucial information for making allocation decisions in customer hierarchies and propose decentralized methods that lead to near-optimal allocations while respecting the requirements for information aggregation. We evaluate the methods by comparing their information requirements and reflect on the role of information sharing in hierarchical allocation decisions.

Dieser Eintrag ist Teil der Universitätsbibliographie.

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