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The boom of e-commerce in the globe in recent years has expedited the expansion of fulfillment infrastructures by e-retailers. While e-retailers are building more warehouses to offer faster delivery service than ever, the associated fulfillment costs have skyrocketed over the past decade. In...
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We provide the first approximation algorithm for dynamic newsvendor networks with stochastic demand and backlogging. Specifically, under a mild cost condition we prove the cost of a base-stock policy is less than 1.618 times the cost of an optimal policy. This answers an open question of Van...
Persistent link: https://www.econbiz.de/10014078826
Network design problems, such as flexibility design, are ubiquitous in modern marketplaces where firms constantly innovate new ways to match supply and demand. We develop a primal-dual based approach to analyze the flexibility design problem, i.e., allocating subsets of limited resources to each...
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Problem definition: Fulfillment flexibility, the ability of distribution centers (DCs) to fulfill demand originating from other DCs, can help e-retailers reduce lost sales and improve service quality. As the cost of full flexibility is prohibitive, we seek to understand the value of partially...
Persistent link: https://www.econbiz.de/10012851143
We consider ad-supported media platforms with incomplete information about the disutility consumers experience from exposure to advertising. We characterize the platform's optimal menu of subscription prices and advertising quantities in monopoly and competitive settings, revealing insights on...
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We study assemble-to-order (ATO) problems from the literature. ATO problems with general structure and integrality constraints are well known to be difficult to solve, and we provide new insight into these issues by establishing worst case approximation guarantees through primal-dual analyses...
Persistent link: https://www.econbiz.de/10012901672