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Optimal delivery time quotation in supply chains to minimize tardiness and delivery costs

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Abstract

There are many situations when, due to unexpected delays, the supplier may not be able to deliver some orders by the promised due dates. We present a model for quoting attainable delivery times to minimize tardiness penalties and delivery costs, when deliveries take place in batches. We show that the general problem is strongly \({\mathcal {NP}}\)-hard, but when all orders have the same per-unit due-date-assignment cost, it is \({\mathcal {NP}}\)-hard only in the ordinary sense. For the latter case, we present a pseudo-polynomial algorithm, which is converted into a fully polynomial-time approximation scheme. If the tardiness penalties are also identical, we show that the problem can be solved in polynomial time.

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Acknowledgments

This research was supported in part by NSERC Discovery Grant 1708-09.

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Correspondence to George Steiner.

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Dumitrescu, S., Steiner, G. & Zhang, R. Optimal delivery time quotation in supply chains to minimize tardiness and delivery costs. J Sched 18, 3–13 (2015). https://doi.org/10.1007/s10951-014-0396-7

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  • DOI: https://doi.org/10.1007/s10951-014-0396-7

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