We study a tanker chartering decision problem faced by refinery companies. The decision process is formulated as an optimal stopping problem with geometric Brownian motion for the spot freight rate dynamics and a Poisson type arrival process for the tankers. We show the problem can be solved...

In recent years, management gurus have urged businesses to adopt such strategies as just-in-time, lean manufacturing, offshoring, and frequent deliveries to retail outlets. But today, these much-touted strategies may be risky. Global financial turmoil, rising labor costs in developing countries,...

This paper develops a multi-attribute competition model for procurement of short life cycle products. In such an environment, the buyer installs dedicated production capacity at the suppliers before the demand is realized. Final production orders are decided after demand materializes. Of course,...

In a decentralized supply chain, double marginalization is an important source of inefficiency. We suggest in this paper a simple mechanism to reduce it that uses a wholesale price contract and renegotiation. Our mechanism only requires repeated interaction, and rational behavior from the...

We develop an analytical model to assist the design and control of probabilistic distribution systems. These distribution systems are characterized by the explicit inclusion of probabilistic elements. The probabilistic aspect considered is that only a subset of all potential customers needs...

We consider the problem of integrating inventory control and vehicle routing into a cost-effective strategy for a distribution system consisting of one depot and many geographically dispersed retailers. All stock enters the system through the depot and is distributed to the retailers by vehicles...