In this paper we develop a new conditional penalty for the fixed charge transportation problem. This penalty is stronger than both the Driebeek penalties and the Lagrangean penalties of Cabot and Erenguc. Computational testing shows that the use of these penalties leads to significant reductions...

Despite the potential value of information technologies for supply chain management, they are not always adopted as expected. We examine coordination problems and corresponding incentive mechanisms between a manufacturer and a retailer for jointly investing in a new technology that has the...