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Buyback Contracts with a Stochastic Demand Curve
Zhao, Yingxue - 2020
We explore buyback contracts in a supplier-retailer supply chain where the retailer faces a price-dependent downward-sloping demand curve subject to uncertainty. We formulate the problem as a supplier-led Stackelberg game and derive explicitly the equilibrium contract parameters along with the...
Persistent link: https://www.econbiz.de/10012846522
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Two-Stage Pricing for Custom-Made Products
Haruvy, Ernan; Li, Tao; Sethi, Suresh - 2011
A commonly observed two-stage pricing strategy for a custom-made product involves a prepurchase entry fee for a potential consumer and a purchase price if he decides to buy the product. We solve and compare two settings: In the first, the firm does not commit in advance to the second-stage price...
Persistent link: https://www.econbiz.de/10014045889
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A Survey of Stochastic Inventory Models with Fixed Costs : Optimality of (s, S) and (s, S)-Type Policies
Perera, Sandun C.; Sethi, Suresh - 2022
Fixed costs of ordering items or setting up a process arise in many real-life scenarios. In their presence, the most widely used ordering policy in the stochastic inventory literature is the (s, S) policy. Optimality of (s, S) policies and (s, S)-type policies have been investigated for various...
Persistent link: https://www.econbiz.de/10014085423
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Can Strategic Customer Behavior Speed Up Product Innovation?
Liang, Chao - 2020
the firm's decisions on the innovation level of the new version, the production quantities and prices of both versions … improve both its profit and its innovation level by adopting an appropriate rollover strategy when selling to strategic … existing literature, we see that strategic waiting behavior can accelerate innovation. These analytical insights remain largely …
Persistent link: https://www.econbiz.de/10012838796
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An Analysis of Staged Purchases in Deregulated Time-Sequential Electricity Markets
Sethi, Suresh - 2009
We study the problem of optimal staged purchases of electricity in time-sequential deregulated electricity markets. In recent years, the electricity industry has been deregulated and multiple time-sequential auction markets, such as the block forward, the day-ahead and the hour-of, and the...
Persistent link: https://www.econbiz.de/10012720929
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Optimality of (s, S) Policies for a Stochastic Inventory Model with Proportional and Lump-Sum Shortage Costs
Benkherouf, Lakdere; Sethi, Suresh - 2019
This note is concerned with the optimality of an (s; S) policy for a single-item infinite-horizon inventory model when the penalty cost is made-up of two parts: A lump-sum cost independent of the amount of the shortage and a variable cost proportional to the amount of the shortage. Using a...
Persistent link: https://www.econbiz.de/10014198392
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Markovian Demand Inventory Models
Beyer, Dirk; Cheng, Feng; Sethi, Suresh; Taksar, Michael I. - 2010
Business environments change over time. They are cyclic, show seasonality or just evolve over time. This is certainly true for customer demand. As a result, stationary demand distributions are crude approximations of true customer behavior at best. Yet, most classical stochastic inventory models...
Persistent link: https://www.econbiz.de/10014198970
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Finite Production Rate Inventory Models with Increasing Production Cost
Chand, Suresh; Sethi, Suresh - 2010
This paper investigates the dynamic inventory model for the case when production in a period is restricted to a finite set of specified values. The model allows the production rate to be any value in the set (0, P, 2P, ..., mP), where m is a non-negative integer. It is assumed that the setup...
Persistent link: https://www.econbiz.de/10014198992
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Computation of Approximate Optimal Policies in a Partially Observed Inventory Model with Rain Checks
Bensoussan, Alain; Çakanyıldırım, M.; Sethi, Suresh; … - 2020
This paper proposes a new methodology to solve partially observed inventory problems. Generally, these problems have infinitedimensional states that are conditional distribution of the inventory level. Our methodology involves linearizing the state transitions via unnormalized probabilities. It...
Persistent link: https://www.econbiz.de/10014204176
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A Sufficient Condition for Near-Optimal Stochastic Controls and its Application to Manufacturing Systems
Yu Zhou, Xun; Sethi, Suresh - 2017
This paper presents an asymptotic analysis of control models governed by stochastic ordinary differential equations. A sufficient condition of near-optimal controls is given based on Ekeland's principle. It is shown that, under some concavity assumptions, the e-maximum condition in terms of the...
Persistent link: https://www.econbiz.de/10014207032