Differentiating in-stock service by customer value

Differentiating in-stock service by customer value

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Article ID: iaor2007177
Country: United Kingdom
Volume: 9
Issue: 2
Start Page Number: 95
End Page Number: 110
Publication Date: Jun 2006
Journal: International Journal of Logistics
Authors:
Keywords: yield management
Abstract:

Differentiation of in-stock service to business customers of different economic or strategic value to a firm is shown in this paper to dominate, in terms of cost and performance, the set of alternatives ensuring premium availability of product to special customers. A straightforward methodology is adapted from key concepts of Yield or Revenue Management and its merit demonstrated in a numerical example. Managerial issues and implications are emphasised throughout.

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