We introduce a class of models, called newsvendor networks, that generalizes the well-known newsvendor model along three dimensions. Newsvendor networks model the flow of multiple products through multiple processing and storage points over multiple time periods. Such models provide a...

This article reviews the literature on strategic capacity management concerned with determining the sizes, types, and timing of capacity investments and adjustments under uncertainty. Specific attention is given to recent developments to incorporate multiple decision makers, multiple capacity...

Commonality strategies assemble different products from at least one common component and one other product-specific component. The distinguishing feature of commonality, i.e., the presence of dedicated components to be assembled with a common component, is shown to be mathematically...

We study how multi-product queueing systems should be controlled so that sojourn times (or end-to-end delays) do not exceed specified leadtimes. The network dynamically decides when to admit new arrivals and how to sequence the jobs in the system. To analyze this difficult problem, we propose an...

A delay-sensitive customer prefers arriving for service when few or no other customers are in the system. We consider how such a customer should strategically arrive to a service system. We present a model in which strategic customers acting in a self-interested fashion give rise to Poisson arrivals

This paper studies how judicious resource allocation in networks mitigates risk. Theory is presented for general utility functions and mean-variance formulations and is illustrated with networks featuring resource diversification, flexibility (e.g., inventory substitution), and sharing...

This paper presents a model of consumer boycotts where the discrete choices of concerned consumers are represented as stochastic processes. Boycotts are interpreted as a form of voting where consumers are trying to shape the behavior of firms. We solve for the limiting distribution of the...

Few terms in the recent literature on innovation management have been as widely used as the phrase disruptive technology. Yet this term is widely misunderstood. As Christensen and Raynor (2003, p. 143) note, "Many readers have equated in their minds the terms disruptive and breakthrough. It is...

We characterize a firm's optimal factor adjustment when any number of factors face "kinked" linear adjustment costs so that all factor accumulation is costly to reverse. We first consider a general non-stationary case with a concave operating profit function, unrestricted form of uncertainty and...

Brownian networks are a class of linear stochastic control systems that arise as heavy traffic approximations in queueing theory. Such Brownian system models have been used to approximate problems of dynamic routing, dynamic sequencing and dynamic input control for queueing networks. A number of...