We consider a dynamic inventory (production) model with general convex order (production) costs and excess demand that can be accepted or refused by the firm. Excess demand that is accepted is backlogged and results in a backlog cost whereas demand that is refused results in a lost sales charge....

This paper develops an order-up-to S inventory model that is designed to handle multiple items, resource constraints, lags in delivery, and lost sales without sacrificing computational simplicity. Mild conditions are shown to ensure that the expected average holding cost and the expected average...

We consider the impact of variable production costs on competitive behavior in a duopoly where manufacturers compete on quality and price in a two-stage game. In the pricing stage, we make no assumptions regarding these costs--other than that they are positive and increasing in quality--and no...

Science and technology advances drive firms to continually enhance their product's performance and launch sequentially improving offerings. Firms face challenges in marketing such improving products to well-informed, forward-looking consumers who anticipate product improvements and seek to delay...