We consider a finite-horizon, multiechelon inventory system in which the surplus of stock can be sold (i.e., disposed) in the secondary markets at each stage in the system. What are called <i>nested echelon order-up-to policies</i> are shown to be optimal for jointly managing inventory replenishments...

We build a discrete time, serially correlated stochastic demand, nonstationary, finite horizon, capacity expansion model that includes (1) economies of scale in capacity costs, (2) positive expansion leadtimes, and (3) a fixed maximum cumulative capacity, called the shell size. When the shell...

Our Bayesian dynamic programming model builds on existing models to account for inspection delay, choice of keeping production going during inspection and/or restoration, and lot sizing. We focus on describing how dynamic statistical process control (DSPC) rules can improve on traditional,...

This paper derives the optimal simultaneous capacity and production plan for a shortlife-cycle, produce-to-stock good under stochastic demand. Capacity can be reduced as well as added, at exogenously set unit prices. In both cases studied, with and without carryover of unsold units, a target...

The Oxford Handbook of Pricing Management is a comprehensive guide to the theory and practice of pricing across industries, environments, and methodologies. The Handbook illustrates the wide variety of pricing approaches that are used in different industries. It also covers the diverse range of...

The Oxford Handbook of Pricing Management is a comprehensive guide to the theory and practice of pricing across industries, environments, and methodologies. The Handbook illustrates the wide variety of pricing approaches that are used in different industries. It also covers the diverse range of...

This paper studies a firm’s time-to-market decision and subsequent sales channel, pricing and production decisions under three main sources of uncertainty: possibility of qualifying for lucrative sales channels, competitors’ time-to-market behavior and price-sensitive uncertain demand. In...

This paper characterize a decision framework by which a firm can manage generational product replacements under stochastic technological changes. First, we characterize an optimal threshold-based product replacement policy that maximizes the firm's expected total profit for a finite planning...