Abstract
This paper studies reliable due date quotation for online customer orders in a two-echelon dual-channel supply chain when there is a threshold on quoted due dates. In this problem, there exist two delivery options for the e-tail customers with different cost and availability intervals, i.e., directly shipping by the manufacturer or through the retail store. The manufacturer has the capacity constraint for processing online orders. We adopt an online optimization perspective and propose algorithms to determine due date quotation coordinated with scheduling for e-tail customer with the objective of maximizing the total profit of completed orders considering linear due-date-sensitive revenue function and delivery costs. The approach of “competitive analysis” is performed to evaluate the proposed algorithms. We provide parametric bounds on the competitive ratio of any arbitrary online strategy, and investigate the competitive ratio of a specific online algorithm for single-type e-tail channel orders. Computational experiments illustrate the effectiveness of the proposed algorithms and analysis.
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