Satisfying Market Demands with Delivery Obligations

摘要

In this paper, we introduce several variants of the demand selection production planning problem. We assume a problemsetting with deterministic demands across a finite time horizon. It is important to realize that firms have severalcontractual considerations when determining whether or not to satisfy a market's demand. One such considerationis the presence of delivery obligation penalties. We investigate this contract parameter by formulating models withunique delivery obligation rules and determining optimal solution approaches for problem settings without productionor inventory capacities.