Dynamic ordering and buyer selection policies when service affects future demand

•We study a model of a profit-maximizing firm that must dynamically order items and select buyers with service-dependent demand.•The optimal order quantity increases with buyer satisfaction under optimal buyer selection and a fixed order quantity policy is efficient.•Optimal buyer selection favors maximizing revenue if buyer satisfaction is high and future demand if it is low.•Optimal buyer selection for two buyers is index-based.•For multiple buyers, a novel “active-constraint” index policy is near-optimal.