When making lot-sizing decisions, managers often use a model horizon T that is much smaller than any reasonable estimate of the firm's future horizon. This is done because forecast accuracy deteriorates rapidly for longer horizons, while computational burden increases. However, what is optimal...

Service firms have increasingly been competing for market share on the basis of delivery time. Many firms now choose to set customer expectation by announcing their maximal delivery time. Customers will be satisfied if their perceived delivery times are shorter than their expectations. This gap...

In this paper we develop a model for a capacitated production/distribution network of general (but acyclic) topology with a general bill of materials, as considered in MRP (Material Requirement Planning) or DRP (Distribution Requirement Planning) systems. This model assumes stationary,...

We address a fundamental two-echelon distribution system in which the sales volumes of the retailers are endogenously determined on the basis of known demand functions. Specifically, this paper studies a distribution channel where a supplier distributes a single product to retailers, who in turn...

We consider a dynamic pricing model for selling a given stock of a perishable product over a finite time horizon. Customers, whose reservation price distribution changes over time, arrive according to a nonhomogeneous Poisson process. We show that at any given time, the optimal price decreases...

We establish lower bounds on the minimum cost of managing certain production-distribution networks with setup costs at all stages and stochastic demands. These networks include serial, assembly, and one-warehouse multi-retailer systems. We obtain the bounds through novel cost-allocation schemes....

This paper studies echelon stock (R, nQ) policies in serial production/inventory systems with stochastic demand. We provide a recursive procedure to compute the steady state echelon inventory levels of the systems, which can be used to evaluate the long-run average holding and backorder costs as...

Consider a two-echelon repairable inventory system consisting of a central depot and multiple stocking centers. The centers provide parts replacement service to customers and replenish their inventory from the depot, following a one-for-one policy. The depot fills center replenishment orders on...