Optimization-based decision support for order promising in supply chain networks

Abstract We are interested in order promising models for supply chain management in the context of firms involved in eCommerce. In this context, buyers and suppliers constantly exchange information. All parties update production, warehousing, and distribution plans based on negotiations involving product price, features, and due dates. One interesting question, from the supplier's point of view, is how a supplier firm should take part in these negotiations. Of particular interest to us at this point in time is to build an optimization-based decision support system (DSS) that will help an agent of the firm promise orders, i.e., quote due dates and prices. We present a model and illustrate it with a small example to show how the DSS addresses a useful need.

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