This paper analyzes optimal auction design when delivery of supply is uncertain. We consider a buyer facing multiple potential suppliers, each having an associated (exogenous) reliability that quantifies its risk of supply failure. We design optimal mechanisms that depend on the buyer's level of...

Firms mitigate uncertainty in demand and supply by carrying safety stock, planning for excess capacity and diversifying supply sources. In this study, we provide a framework to jointly optimize these three levers in a periodic review infinite horizon setting, and in particular we examine how one...

A fundamental issue faced by experience providers – ranging from retailing to cultural institutions – is to display a collection of items for physical or digital interactions. The arrangement of the exhibits in different locations, which we call the layout, affects the visitors’ choices...

Problem definition: Omnichannel retailers interact with customers both online and offline. So far, they have used this richer information to optimize the sales process by designing the right channel and supply chain structures, and by personalizing offer, pricing and promotions. We advance an...