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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)
We consider the order fulfillment process of a supplier producing a customized capital good, such as production equipment, commercial aircraft, medical devices, or defense systems. As common in these industries, prior to receiving a firm purchase order from the customer, the supplier receives a series of shared forecasts, which are called 'soft orders'.(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)
Draft: Please do not circulate. Abstract We consider the allocation of capacity in a system in which rental equipment is accessed by two classes of customers. We formulate the problem as a continuous-time analogue of the one-shot allocation problems found in the more traditional literature on revenue management, and we analyze a queueing control model that(More)