Leadtime quoting

In recent years, leadtime quoting has been addressed in commercial applications under the heading of available to promise (ATP) and capable to promise... 

By using the Internet to both collect the demand and delivery data needed to evolve the model and to present the resulting dynamic leadtime quotes, statistical leadtime quoting models could play a key role in the operation of e-commerce systems. 

Hopp, W.J., M.L. Roof 2001. A Simple Robust Leadtime Quoting Policy. Manufacturing Service Operations Management 3, 321-336. 

Most directly relevant to the marketing-operations interface is research directly into methods for setting due dates and quoting leadtimes (e.g.. Baker, 1984, Baker and Bertrand, 1981, Bertrand, 1983a, Bertrand, 1983b, Duenyas,... 

One of the earliest examples of a paper which considers simultaneous price and leadtime decisions is Easton and Moodie [45]. For their demand model, the authors use a logit based model, where customer s utility is based on the work required for a job, the price, and the leadtime. The manufacturer gives a bid to a customer for a job, and the customer decides whether to accept or reject the job thus the available shop time is a random variable. The authors develop a procedure for quoting a price and leadtime for one job at a time based on the current status of the system. 

Plambeck [120] considers two classes of customers that differ by price and delay sensitivity. An initial static price and production rate are fixed by the manufacturer, and the firm dynamically quotes leadtimes and determines the processing of customer orders. The author shows her solution is asymptotically optimal in heavy traffic in the system. 

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