This paper evaluates the simultaneous determination of price and inventory replenishment when a firm faces demand from distinct market segments. A firm utilizes fences, such as advance or nonrefundable payment, to maintain separation of its market segments; however, fences are imperfect and...

In this paper, we address the simultaneous determination of price and inventory replenishment when customers return product to the firm. We examine cases when the quantity of returned product is a function of both the quantity sold and the price, in single and multi-period problems, with and...

The use of a Visual Interactive Simulation (VIS) model for experimental analysis, where the user initiates runs and gathers information as desired without necessarily any respect for formal analysis, is encouraged by some proponents of VIS and VIS software packages. Proponents of formal output...

Products returned by customers are common in the retail industry and result in costs to both the supplier and the retailer. In practice, retailers implement returns policies that may give customers a full, partial, or no refund for returned products. In this paper, we examine how a firm that...

We investigate a decentralized supply chain that consists of a manufacturer and a retailer where the retailer simultaneously determines the retail price and order quantity while experiencing customer returns and price dependent stochastic demand. We propose an agreement between the manufacturer...

Firms may produce a variety of generally similar products or may practice "scientific pricing" or revenue management where the firm will offer similar or somewhat differentiated products in multiple market segments at different prices. Whenever generally similar products are available, the...

Tools to restrict customer migration across segments are referred to as 'fences' in revenue management. However, most fences are not perfect and allow some degree of demand leakage from the high-priced market segment to the low-priced segment. In this paper, we lay out the theoretical foundation...