Template-Type: ReDIF-Paper 1.0
Author-Name: Gabor, A.F.
Author-Name-Last: Gabor
Author-Name-First: Adriana
Author-Name: Guang, Y.
Author-Name-Last: Guang
Author-Name-First: Yang
Author-Name: Axsäter, S.
Author-Name-Last: Axsäter
Author-Name-First: Sven
Title: Comparison of two methods for customer differentiation
Abstract: In response to customer specific time guarantee requirements, service providers can offer differentiated ser- vices. However, conventional customer differentiation methods often lead to high holding costs and may have some practical drawbacks. We compare two customer differentiation policies: stock reservation and pipeline stock priority for high priority customers. We derive exact analytical expressions of the waiting time distri- bution of both types of customers for a stock reservation policy. We then provide accurate approximation methods for a pipeline stock priority policy. By comparison, we offer insights concerning which method should be used under different service level requirements.
Creation-Date: 2014-02-15
File-URL: https://repub.eur.nl/pub/50502/ERS-2014-003-LIS.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2014-003-LIS
Keywords: inventory planning, service differentiation, priority demand classes
Handle: RePEc:ems:eureri:50502