Abstract
This paper investigates strategies of supply chain delivery performance improvement. The performance is measured using a cost-based analytical model which evaluates the expected penalty cost for early and late delivery. The results demonstrate strategies for improving delivery performance when a supplier uses an optimally positioned delivery window to minimize the expected penalty cost. The effect of the width of the delivery window and penalty costs for early and late deliveries on the optimal position of the delivery window and the expected penalty cost are explored in general case. In addition to that, the effect of a mean and variance parameters of a normal delivery time distribution are revised. Theoretical and managerial implications of the findings are discussed.
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