Becerril-Arreola, Rafael; Leng, Mingming; Parlar, Mahmut - In: European Journal of Operational Research 230 (2013) 2, pp. 272-283
We consider a two-stage decision problem, in which an online retailer first makes optimal decisions on his profit margin and free-shipping threshold, and then determines his inventory level. We start by developing the retailer’s expected profit function. Then, we use publicly-available...