Bundle pricing is a widespread phenomenon. However, despite its importance as a pricing tool, surprisingly little is known about how to find optimal bundle prices. Most discussions in the literature are restricted to only two components, and even in this case no algorithm is given for setting...

We consider the problem of setting safety stock when both the demand in a period and the lead time are random variables. There are two cases to consider. In the first case the parameters of the demand and lead time distributions are known; in the second case they are unknown and must be...

It has been observed that firms alter year-end inventory policies in response to accounting tax incentives. This study proposes a stochastic ordering policy model which quantifies these effects. An innovative feature is its use of two decision variables: an initial order-up-to-level at the...

The multinomial logit model is a standard approach for determining the probability of purchase in product line problems. When the purchase probabilities are multiplied by product contribution margins, the resulting profit function is generally nonconcave. Because of this, standard nonlinear...