We consider the problem of a firm selling multiple products that consume a single resource over a finite time period. The amount of the resource is exogenously fixed. We analyze the difference between a dynamic pricing policy and a list price capacity control policy. The dynamic pricing policy...

Consider a dynamic decision making model under risk with a fixed planning horizon, namely the dynamic capacity control model. The model describes a firm, operating in a monopolistic setting and selling a range of products consuming a single resource. Demand for each product is time-dependent and...

Consider a risk-averse decision maker in the setting of a single-leg dynamic revenue management problem with revenue controlled by limiting capacity for a fixed set of prices. Instead of focussing on maximizing the expected revenue, the decision maker has the main objective of minimizing the...

In many implemented network revenue management systems, a bid price control is being used. In this form of control, bid prices are attached to resources, and a product is offered if the revenue derived from it exceeds the sum of the bid prices of its consumed resources. This approach is...

Companies today generally hold several thousands SKUs (stock-keeping units) in stock. With an ever increasing trend towards highly customized products, the number of SKUs held by companies is likely to increase even more in the future. For each of the SKUs held in stock, a decision has to be...

In recent years, many traditional practitioners of revenue management such as airlines or hotels were confronted with aggressive low-cost competition. In order to stay competitive, these firms responded by reducing fare restrictions that were originally meant to fence off customer segments. In...

Consider a firm that owns a fixed capacity of a resource that is consumed in the production or delivery of multiple products. The firm's problem is to maximize its total expected revenues over a finite horizon either by choosing a dynamic pricing strategy for each product, or, if prices are...

We develop a competitive pricing model which combines the complexity of time-varying demand and cost functions and that of scale economies arising from dynamic lot sizing costs. Each firm can replenish inventory in each of the T periods into which the planing horizon is partitioned. Fixed as...

We consider a family of N items which are produced in or obtained from the same production facility. Demands are deterministic for each item and each period within a given horizon of T periods. If in a given period an order is placed, setup costs are incurred. The aggregate order size is...

This paper conducts a probabilistic analysis of an important class of heuristics for multiitem capacitated lot sizing problems. We characterize the asymptotic performance of so-called progressive interval heuristics as T, the length of the planning horizon, goes to infinity, assuming the data...