[grads] Networks & Optimization Seminar

Michael Pelsmajer pelsmajer at iit.edu
Thu Feb 19 15:55:37 CST 2009


Hi.  Elizabeth Durango-Cohen will speak in our seminar next week.

Monday, February 23
12:45pm sharp (the speaker must leave early)
E1 106

"Supplier Commitment and Production Decisions Under a
Forecast-Commitment Contract"

Abstract:  In this talk we discuss a forecast-commitment contract.  In such
contracts, the customer provides a forecast, the supplier makes a production
commitment to the customer based on the forecast, and the customers minimum
order quantity is a function of the forecast and committed quantities. We
provide a complete analysis of the suppliers decisions when there is a
single customer facing uncertain demand. We first show that the supplier has
two dominant commitment strategies: committing to the forecast or committing
to the production quantity. We then characterize the jointly optimal
commitment and production strategy for the supplier and extend the results
to consider a capacity constraint. We discuss managerial insights, and
future research directions.


Hope to see you there!

Best,
Michael J. Pelsmajer             http://www.iit.edu/~pelsmaje
Applied Mathematics, E1 Room 206       pelsmajer at iit.edu
Illinois Institute of Technology         (312)567-5344
Chicago, IL 60616


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