Research Article

Optimization and Customer Utilities under Dynamic Lead Time Quotation in an Type Base Stock System

Table 1

Optimal policy.
(a)

01234

State −40
−300
−2000
−10000
00.80.80.80.80.8
10.80.80.80.80.8
20.80.80.80.80.8
30.80.80.80.80.8
40.80.80.80.80.8
51.952.152.051.81.3
62.82.952.92.72.45
73.453.63.553.43.15
84443.953.75
944

Profit4.9955.2025.1204.8704.520
Utility−0.549−0.0140.2960.4780.584

5.8275.8965.9395.9655.981
0.0000.2050.5280.9201.354
0.0000.0000.0000.0000.000
T(d)0.8320.4880.2910.1750.108

(b)

01234

State −40
−300
−2000
−10000
00.80.80.80.80.8
10.80.80.80.80.8
20.80.80.80.80.8
30.80.80.80.80.8
41.451.91.951.71.25
52.52.82.82.652.4
63.23.453.453.353.15
73.8443.93.7
8444

Profit4.5884.9684.9814.7864.469
Utility−0.4330.0710.3500.5100.603

5.7325.8285.8995.9425.969
0.0000.2090.5330.9251.358
0.3980.2290.1350.0810.049
0.7460.4220.2480.1500.094