Production Control with Backlog-Dependent Demand

  title={Production Control with Backlog-Dependent Demand},
  author={Stanley B. Gershwin},
We study a manufacturing firm that builds a product to stock to meet a random demand. Production time is deterministic, so that if there is a backlog, customers are quoted a lead time that is proportional to the backlog. In order to represent the customers’ response to waiting, we introduce a defection function — the fraction of customers who choose not to… CONTINUE READING