Distribution centers (DCs) replenish stores with size-specific ship-packs. The ship-packs may be eaches (i.e. individual units), inners (a group of individual units), or cases (a group of inners). The problem that we consider is to determine the ship-pack to use for each stock-keeping-unit. The...

We extend Schmittlein et al.'s model (1987) of customer lifetime value to include satisfaction. Customer purchases are modeled as Poisson events and their rates of occurrence depend on the satisfaction of the most recent purchase encounter. Customers purchase at a higher rate when they are...