Abstract
Many companies have adopted the postponement strategy to manage their supply chain and achieve the continuous competitive advantage. There have been many literatures solving the postponement degree of product manufacture, such as Graman (2010), and our paper is to solve the similar problem. The target of our paper is to a new cost model to solve the partial postponement problem by adding penalty cost parameter of shortage under stochastic demand based on the research work by Graman (2010) in the European Journal of Operational Research.
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