We present a model for forecast evolution that captures two notions related to forecasts: (1) forecasts are not exact; (2) forecasts over longer horizons are less certain than those over shorter horizons. We model the forecast of discrete demand as a band defined by the lower and upper bounds on...

In this paper we extend forecast band evolution and capacitated production modelling to the multiperiod demand case. In this model, forecasts of discrete demand for any period are modelled as bands and defined by lower and upper bounds on demand, such that future forecasts lie within the current...

We show that an agent maximizing some utility function on a discrete (as opposed to continuous) consumption space will obey the generalized axiom of revealed preference (GARP) so long as the agent obeys cost efficiency. Cost efficiency will hold if there is some good, outside the set of goods...

In this paper we consider the newsvendor model with real options. We consider a mixed contract where the retailer can order a combination of q units subject to the conditions in a classical newsvendor contract and Q real options on the same items. We provide a closed form solution to this mixed...

The fill rate is usually computed by using the traditional approach, which calculates it as the complement of the quotient between the expected unfulfilled demand and the expected demand per replenishment cycle, instead of directly the expected fraction of fulfilled demand. Furthermore the...

In this paper we consider the newsvendor model with real options under discrete demand. We consider a mixed contract where the retailer can order a combination of q units subject to the conditions in a classical newsvendor contract and Q real options on the same items. We provide a closed form...

In this paper we consider the transfer of risk in a newsvendor model with discrete demand. We view the newsvendor model as a leader/follower problem where the manufacturer (leader) decides the wholesale price and the retailer (follower) decides the quantity ordered. Taking a Pareto-optimal...

The primary goal of this paper is the development of a generalized method to compute the fill rate for any discrete demand distribution in a periodic review policy. The fill rate is defined as the fraction of demand that is satisfied directly from shelf. In the majority of related work, this...

We consider a two node supply chain with a rational manufacturer–retailer pair, in which the retailer has private information that affects the nodes׳ reservation levels. Quantity discounts offered by the manufacturer is the mechanism we propose in order to achieve reduced costs for both...

It is common for a retailer to sell products from competing manufacturers. How then should the firms manage their contract negotiations? The supply chain coordination literature focuses either on a single manufacturer selling to a single retailer or one manufacturer selling to many (possibly...