This paper investigates the dynamic inventory model for the case when production in a period is restricted to a finite set of specified values. The model allows the production rate to be any value in the set {0, P, 2P, ..., mP}, where m is a nonnegative integer. It is assumed that the setup cost...

Cooperative advertising is an important mechanism used by manufacturers to influence retailers' promotional decisions. In a typical arrangement, the manufacturer agrees to reimburse a fraction of a retailer's advertising cost, known as the subsidy rate. We consider a case of new product adoption...