The subject of this article is the simultaneous choice of product price and manufacturing capacity if demand is stochastic and service-level sensitive. In this setting, capacity as well as price have an impact on demand because several aspects of service level depend on capacity. For example, delivery time will be reduced if capacity is increased given a constant demand rate. We illustrate the ...

We study the optimal policy for a serial inventory system under periodic review when excess demand at the retailer (i.e., the most downstream stage) is lost. We focus on “high service level environments” (i.e., systems where the cost of a lost sale is high compared to inventory holding costs). These environments are typical of products whose margins are high relative to their holding costs. Whe...

The extant literature on after-sales service support suggests an implicit consensus around the (Pareto) superiority of performance-based contracts (PBC) over traditional time-and-material contracts. However, when product technology is new, a setting in which the vendor possesses superior information on product reliability, there is compelling evidence to suggest that buyers prefer the tradition...

Users of E-Sales platforms typically face the problem of choosing the most suitable product or service from large and potentially complex assortments. Whereas the problem of finding and presenting suitable items fulfilling the user’s requirements can be tackled by providing additional support in the form of recommenderand configuration systems, the control of psychological side e↵ects resulting...

The aim of the present study was to evaluate the association between failed smoking cessation and occupation by age stratification among Korean males and provide quantitative evidence of factors associated with failed smoking cessation. The study comprised 3,127 male workers who had attempted smoking cessation during their life time. Data were obtained from the Korea National Health and Nutriti...

Due to its complex nature, after-sales service support for systems such as aircraft engines is commonly outsourced to the vendor. A key input to contracting for such support is system reliability. When producttechnology is new, the vendor often knows more about reliability than the buyer, potentially leading to contractual inefficiencies. This paper examines the role of after-sales contracts as...

Performance-based contracting is reshaping service support supply chains in capital intensive industries such as aerospace and defense. Known as Power by the Hour in the private sector and as Performance-Based Logistics (PBL) in defense contracting, it aims to replace traditionally used …xed-price and cost-plus contracts in order to improve product availability and reduce the cost of ownership ...

In recent years, social media has become a customer touch-point for the business functions of marketing, sales and customer service. We aim to show that intention analysis might be useful to these business functions and that it can be performed effectively on short texts (at the granularity level of a single sentence). We demonstrate a scheme of categorization of intentions that is amenable to ...