Resource prices rise when more costly sources need to be exploited. When the world price increases, owners of low-cost sources receive scarcity rents. The magnitude of the rents depends on the range of resource qualities being simultaneously exploited and can represent a substantial transfer of...

Advertising plays an important role in affecting consumer demand. Socially responsible firms are expected to use advertising judiciously, limiting advertising of “bad” products. An example is the advertising initiative adopted by several major food manufacturers to limit the advertising of...

This paper develops a Vendor Managed Inventory (VMI) model for a two-level supply chain comprised of one vendor and several non-competing retailers in which both the raw material and the finished product have different deterioration rates. It is assumed that the market demand for the finished...

We consider a robust optimization model of determining a joint optimal bundle of price and order quantity for a retailer in a two-stage supply chain under uncertainty of parameters in demand and purchase cost functions. Demand is modeled as a decreasing power function of product price, and unit...

Cooperative advertising is an agreement between a manufacturer and a retailer to share advertising cost at the local level. Previous studies have not investigated cooperative advertising for complementary products and their main focus was only on one good. In this paper, we study a two-echelon...