In this study, we are primarily motivated by the research problem of recognizing heterogeneous customer behavior towards waiting for order fulfillment under the 'threshold rationing policy' (also known as the 'critical level policy'), and aim to find its effect on system stock levels and...

We have been witnessing the dual trend of retailers offering increasingly flexible consumer return policies and the rise in clearance sales and the number of off-price clearance channels. We model and connect these two trends by making salvage/clearance price endogenous and ask the question of...