We consider a cooperative advertising channel consisting of a manufacturer selling its product through a retailer in competition with another independent retailer. The manufacturer subsidizes its retailer's advertising only when a certain threshold is positive. Moreover, the manufacturer's...

Cooperative advertising is an incentive offered by a manufacturer to influence retailers' promotional decisions. We study a dynamic durable goods duopoly with a manufacturer and two independent and competing retailers. The manufacturer as a Stackelberg leader announces his wholesale prices and...

We compare site-to-store and store-to-site strategies for dual-channel integration. The site-to-store (resp., store-to-site) strategy can ll unmet orders in the physical channel (resp., online channel) with the inventory in the online channel (resp., physical channel). With one (physical) retail...

The models we present in this chapter are related to two classical inventory models: The EOQ model of Harris (1913) and the dynamic lot size model of Wagner and Whitin (1958). In relation to the EOQ model, our models depart in three different ways: (1) the EOQ model assumes that the problem...

We study sourcing and pricing decisions of a firm with correlated suppliers and a price-dependent demand. With two suppliers, the insight -- cost is the order qualifier while reliability is the order winner -- derived in the literature for the case of exogenously determined price and independent...

Inventory control is among the most important topics in operations research because of large investments in inventory and their effect on the profitability of the firms. A systematic analysis of inventory problems began with the development of the classical EOQ formula of Ford W. Harris in 1913,...

Ever since the publication of Pontryagin's Maximum Principle, the number of its applications to management science problems has been steadily growing. This paper is an up-to-date survey of the applications of the deterministic maximum principle to the three functional areas of management:...

A mixed optimization technique for optimal machine replacement is presented which allows much more flexibility than previous models. Optimal purchase, maintenance and sale of a given machine between any two given points in time is treated as a subproblem, which one may choose to solve via...

Management science applications frequently involve problems of controlling continuous time dynamic systems, that is, systems which evolve over time. Optimal control theory, a relatively new branch of mathematics, determines the optimal way to control such a dynamic system. The purpose of this...

An application of the Stokes' theorem is illustrated by solving the two state problem, with inequality constraints, of Dobell and Ho concerning the optimal investment of resources. Whenever applicable, the Stokes' theorem approach seems to be elegant and parsimonious