Retailers face increasing competitive pressure to determine how best to deliver products purchased on-line to the end customer. As online retailing grows, so does the need for retailers to establish an appropriate fulfillment strategy. This is particularly true in grocery where the customer must...

We study capacity competition in a service environment where the arrival rates are highly seasonal (e.g., lunch time rushes) and customers are time sensitive, so may depart without receiving service if the waiting time is too long. As a stepping stone for the competitive model, we begin by...