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

Table 3

Comparison of heuristic policies.

(a) Policies

	Linear	Convex	Concave	Optimal
0	0.8	0.8	0.8	0.8
1	1.2	1	1.4	0.8
2	1.8	1.5	2.1	0.8
3	2.4	2	2.8	0.8
4	3	2.8	3.2	1.95
5	3.6	3.6	3.6	2.8
6	4	4	4	3.45
7	4	4	4	4
8	4	4	4	4

(b) Profits and utilities

		Base stock
		0	1	2	3	4
Linear	Profit	4.078	4.751	4.861	4.708	4.415
	Utility	0.111	0.413	0.562	0.642	0.686
Convex	Profit	4.236	4.819	4.898	4.731	4.430
	Utility	0.044	0.370	0.535	0.625	0.677
Concave	Profit	3.958	4.701	4.834	4.692	4.405
	Utility	0.143	0.436	0.576	0.650	0.691
Optimal	Profit	4.588	4.968	4.981	4.786	4.469
	Utility	−0.433	0.071	0.350	0.510	0.603