This research studies the impact of improved forecasts on the members of a two-stage supply chain. The supplier builds capacity based on original forecast information, and the manufacturer places its order after observing improved (but imperfect) demand information. We study three types of...

In this paper, we consider a periodic review inventory problem where demand in each period is modeled by linear regression. We use a Bayesian formulation to update the regression parameters as new information becomes available. We find that a state-dependent base-stock policy is optimal and we...

Managers often engage in forecast updating with the expectation that forecast updating reduces expected shortage and inventory costs. One undesirable effect of forecast updating is that it may lead to the bullwhip effect, a phenomenon where the variability of demand increases as one moves up the...

As firms are increasingly transforming their organizations in response to environmental pressures and hypercompetition, the traditional sequence of manufacturing and marketing (hereafter M/M) strategy formulation and implementation is undergoing scrutiny. Questions are being raised about how to...

Past research into the determinants of international trade highlighted the importance of the basic spatial gravity model augmented by additional variables representing sources of friction. Studies modeled many sources of friction using various proxies, including indices based on expert judgment...

Investments in operating assets with identical expected discounted return and identical risk characteristics (i.e., variances and higher moments) when measured at the outset may have significantly different patterns of uncertainty resolution over their lives. The concept of uncertainty...

This paper considers the theory and application of an alternative measure of stock-out cost in inventory control. Instead of recording the number of units of a product which are backordered, in certain situations it is appropriate to focus on the number or percentage of customer line items...

We consider the problem of managing two assets, cash and an earning asset, when net cash flows are stochastic and when there are transfer costs for transferring assets from one form to the other. Previous work on the stochastic cash-balance problem has assumed holding costs for holding excess...