Study on Sales System with Demand Affected by Delivery Lead Time
This research considers a direct sales system facing demand that is sensitive to both sales price and delivery lead time. The behavior pattern of such a direct sales channel is studied by utilizing the developed model, numerical experiment and sensitivity analysis. Our results reveal that when manufacturers’ capacity is set higher, customers would be less likely lost. In contrast, if manufacturers’ capacity is set lower, more potential customers may quickly be lost due to longer lead time. The outcome of analysis shows how major factors influence decision making and profits. Our findings may serve as a practical reference to enterprise in practice.
C. Y. Tsai et al., "Study on Sales System with Demand Affected by Delivery Lead Time", Applied Mechanics and Materials, Vol. 624, pp. 698-701, 2014