A pre-pack is a collection of items used in retail distribution. By grouping multiple units of one or more stock keeping units (SKU), distribution and handling costs can be reduced; however, ordering flexibility at the retail outlet is limited. This paper studies an inventory system at a retail...

This paper examines how strategic customer behavior impacts e-tailers' inventory storage location, pricing and inventory level decisions. We build a stylized model where an e-tailer either has only a central warehouse, or add a local warehouse and thus has both warehouses for inventory storage....

We present an efficient dynamic programming algorithm to determine the optimal assortment and inventory levels in a single-period problem with stockout-based substitution. In our model, total customer demand is random and comprises of a fixed proportion of customers of different types. Customer...