In this paper, an incentive policy is proposed to coordinate ordering, lead time, and pricing strategies in a two-echelon manufacturing supply chain (SC) consisting of one manufacturer and one retailer. The system is faced with a stochastic demand which depends on both price and lead time. The manufacturer decides on production size and manufacturing acceleration rate while the retailer determi...

If consumers wholly or partially control a firm with market power they will charge less than the profit maximizing price. Starting at the usual monopoly price, a small price reduction will have a second order effect on profits but a first order effect on consumer surplus. Despite this desirable static result, it has been argued that cooperatives are vulnerable to take-over by outsiders who will...

This paper studies market-makers, agents responsible for maintaining liquidity and orderly price transitions in markets. Market-makers include major firms making markets on global stock exchanges, as well as software agents that run behind the scenes on novel electronic markets like prediction markets. We use a sophisticated model of marketmaking to build richer agent-based models of markets an...

The economic lot scheduling problem (ELSP) is a well known problem that focuses on scheduling the production of multiple items on a single machine such that inventory and setup costs are minimized. In this paper, we extend the ELSP to include price optimization with the objective to maximize profits. A solution approach based on column generation is provided and shown to produce very close to o...

We study an inventory system that supplies price-sensitive demand modeled by Brownian motion, focusing on the optimal pricing and inventory replenishment decisions, under both long-run average and discounted objectives. Analytical solutions are obtained in all cases, and related to or contrasted against previously known results. In addition, we bring out the interplay between the pricing and th...

Large number of researcher papers has been published for inventory lotsize models under trade credit financing by assuming that demand rate is constant. But demand rate is often not constant. During the growth stage of the product life cycle, the demand function increases with time. In this paper we extend the constant demand to timedependent demand. This paper derives the problem of determinin...

We study the ability of banks and merchants to influence the consumer’s payment instrument choice. Consumers participate in payment card networks to insure themselves against three types of shocks— income, theft, and their merchant match. Merchants choose which payment instruments to accept based on their production costs and increased profit opportunities. Our key results can be summarized as ...

The determination of practical and coherent policy to pin down the price in restructured distribution networks should be considered as a momentous topic. The present paper introduces a new method of distribution marginal price (DMP) calculation. The main aim of this paper is to evaluate the DMP for both producers and consumers separately. For this purpose, the first part of the procedure emphas...

We study a service facility modelled as a single server queueing system with Poisson arrivals and limited or unlimited buffer size. In systems with unlimited buffer size, the service times have general distributions, whereas in finite buffered systems service times are exponentially distributed. Arriving customers enter if there is room in the facility and if they are willing to pay the posted ...

We develop a competition index for differentiated products oligopoly and apply it to assessing the impact of concentration on price in hospital markets in California. Our index, which we term LOCI, is bounded between zero and one and increases with the competitiveness of a market. We use 1992-1995 hospital data from California to estimate the impact of concentration on price using our new conce...