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In a linear programming (LP), market demand is assumed to be constant, but the demand is often random variable which is to be realized as time lapses. We refined the previous work of Higle and Wallace (2003) who studied an LP depending on the timing of market demand realization. The motivation of this research is the need to consider three operational strategies used for dealing with demand uncertainty. We improved the previous work in the following aspects. These are the strategy of speed, the strategy of forecasting, and the strategy of outsourcing. Nine distinct LP examples are studied depending on the velocity of supply chain process and the type of operations strategy.

Timing of Demand Realization in an LP and Operations Strategies