We analyze the problem of minimizing average inventory costs subject to fill-rate type of service-level constraints in serial and assembly production/distribution systems. We propose optimal and heuristic procedures to solve this problem. Our model and solution procedures can be used to manage...

We noticed an error in the upper bound on the optimal system stock in Boyaci and Gallego (2001). We provide a procedure to compute the correct bound.

Most durable products have two distinct types of customers: first-time buyers and customers who already own the product, but are willing to replace it with a new one or purchase a second one. Firms usually adopt a price-discrimination policy by offering a trade-in rebate only to the replacement...

In this paper, we study a profit-maximizing firm selling two substitutable products in a price and time sensitive market. The products differ only in their prices and delivery times. We assume that there are dedicated capacities for each product and that there is a standard industry delivery...

We show the existence of Nash equilibria in a Bertrand oligopoly price competition game using a possibly asymmetric attraction demand model with convex costs under mild assumptions. We show that the equilibrium is unique and globally stable. To our knowledge, this is the first paper to show the...

A flexible product is a menu of two or more alternative, typically substitute, products offered by a constrained supplier using a sales or booking process. The supplier reserves the right to assign customers who purchase a flexible product to one of the alternatives at a time near the end of the...

This paper considers serial production-transportation systems. In recent years, researchers have developed a fairly simple functional equation that characterizes optimal system behavior, under the assumption of constant leadtimes. We show that the equation covers a variety of stochastic-leadtime...

Customers and downstream supply chain partners often place, or can be induced to place, orders in advance of future requirements. We show how to optimally incorporate advance demand information into periodic-review, multiechelon, inventory systems in series. While the state space for series...