We investigate a firm's product line design and capacity investment problem for vertically differentiated products along design quality levels. Customers arrive according to a Poisson process and are heterogeneous in their marginal valuation of the quality level. Customers make product choices...

We consider the impact of variable production costs on competitive behavior in a duopoly where manufacturers compete on quality and price in a two-stage game. In the pricing stage, we make no assumptions regarding these costs--other than that they are positive and increasing in quality--and no...

We consider a centralized distribution network with multiple retailers who receive replenishment inventory to satisfy customer demand of the local markets. The operational flexibility of the network is defined as the opportunity that one retailer's excess inventory can be transferred to satisfy...