Order-Based Backorders and Their Implications in Multi-Item Inventory Systems

  title={Order-Based Backorders and Their Implications in Multi-Item Inventory Systems},
  author={Jing-Sheng Song},
  journal={Management Science},
In a multi-item inventory system, such as an assemble-to-order manufacturing system or an online-retailing system, a customer order typically consists of several different items in different amounts. The average order-based backorders are the average number of customer orders that are not yet completely filled. While this is an important measure of customer satisfaction, it has not been widely studied in the operations management literature. This is largely because its evaluation involves the… CONTINUE READING

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