Capacity and Inventory Management in the Presence of a Long-term Channel and a Spot Market

摘要: Manufacturers often sell their products both to customers acquired over time and sustained through contractual agreements new businesses electronic markets. These two sales channels (contract markets exchanged based procurement) coexist for several capitalintensive industries such as the semiconductor chemical (Kleindorfer Wu 2003). The can enable manufacturer better utilize available capacity if manager optimally allocate resources. In this paper, we establish an optimal production inventory allocation policy a periodic-review, finite-horizon, capacity-constrained manufacturing system. particular, show that with thresholds, produce-up-to sell-downto/buy-up-to is optimal. We also provide some insights into manufacturer’s dynamic pricing long-term channel.