This book develops a modeling framework to analyze the problem of 
inventory management with alternative delivery times. The general 
context considered here is that a seller replenishes its inventory in 
fixed intervals and, between replenishments, allocates the limited 
inventory to satisfy customers who are both price and delivery-time 
sensitive. On the demand side, customers have heterogeneous 
delivery-time requirements and choose either spot or late delivery. This
 theoretical modeling captures the essence of real-world business 
practices such as the delivery time market segmentation strategy adopted
 by automobile dealerships in China and many other similar examples. The
 book focuses on the seller’s optimal inventory replenishment and demand
 fulfillment policies, and our results provide managerial insights into 
the merits of flexible delivery-time options. Similar applications such 
as the group-buying mechanism are also examined. The main mathematical 
tool used in theoretical analysis is dynamic programming. This book is 
written for students, researchers, and practitioners in the areas of 
operations management and industrial engineering who are interested in 
understanding the rationale of flexible delivery times and designing 
successful applications.

Inventory Management with Alternative Delivery Times PDF

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