Prior studies show that coordinating supply chain inventories with common repleni$hment epochs (CRE) provides benefit for vendor and buyers.' Coordination using selective discourit (SD) strategy allows some buyers fo participate in the coordination scheme while other buyers continue to order as earlier. This can reduce the vendor's total cost more than that of all buyers participating and no buyer coordination in many circumstances: [Miis paper considers the situation in which SD buyeTs place

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... ders before CRE due to demand timing uncertainty According to vendor fiexibility, each SD buyer with early ordering incurs various levels of penalty cost to compensate for possible capacity loss for the vendor. The propesed models also aliow for a more practical situation by considering the cases of equal and unequal probabilities of early ordering for SD buyers. The results indicate that the vendor's cost savings can be improved substarrtially based on the vendor fiexibility, probabi!ity of eaxly ordering, and the number of SD buyers involved in early ordering.