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Motivated by a study of the logistics systems used to manage consumable service parts for the U.S. military, we consider a static threshold-based rationing policy that is useful when pooling inventory across two demand classes characterized by different arrival rates and shortage (stockout and delay) costs. The scheme operates as a (Q, r) policy with the(More)
We study the demand forecast sharing process between a buyer of customized production equipment and a set of equipment suppliers. Based on a large data collection we undertook in the semiconductor equipment supply chain, we empirically investigate the relationship between the buyer's forecasting behavior and the sup-plier's delivery performance. The buyer's(More)
Performance-based contracting is reshaping service support supply chains in capital intensive industries such as aerospace and defense. Known as Power by the Hour in the private sector and as Performance-Based Logistics (PBL) in defense contracting, it aims to replace traditionally used …xed-price and cost-plus contracts in order to improve product(More)
This paper presents a methodology for estimating expected utilization and service level for a class of capacity constrained service network facilities operating in a stochastic environment. A semi-Markov process describes the flows of customers (patients) through a network of service units. We model the case where one of the units has finite capacity and no(More)
In this paper, we study the practice of forecast sharing and supply chain coordination with a game-theoretical model. We find that in a one-shot version of the game, forecasts are not shared truthfully by the customer. The supplier will rationally discount the forecast information in her capacity allocation. This results in Pareto sub-optimality for both(More)