A new production approach for compensating forecast error and customer loss in waiting

Chen Qian, Ching Yuen Chan

Research output: Journal article publicationJournal articleAcademic researchpeer-review

1 Citation (Scopus)


It is noticeable that forecast information is always subject to some deviations, but it helps reduce the product time-to-market. This is important as customer loyalty decreases as the waiting time becomes longer; thus, to have a balance between forecast error and customer loss becomes essential. This paper presents a production approach that aims at compensating the forecast error and the possible customer loss in waiting for either a product (or a service) to boost the profit. A novel model to tackle this scenario is presented. The results showed that it could offer a better production solution than the Make-To-Stock or the Make-To-Order approaches by starting the production sometime in between these two traditional approaches.
Original languageEnglish
Pages (from-to)1325-1336
Number of pages12
JournalInternational Journal of Production Research
Issue number5
Publication statusPublished - 1 Jan 2015


  • customer behaviour
  • forecast variation
  • production model

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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