Large multi-echelon inventory systems usually consist of hundreds of thousands of stock keep units (SKU). Calculating inventory policies for each product is a computational burden that necessitates the need for more efficient policy setting techniques that reduce computational time and increases managerial convenience. The main objective of our research is to investigate the effect of segmentat...

the successful management in construction costing of wood dry kilns is an advantageous approach which brings us not only the assurance in service profitability but also gives rise customer’s satisfaction. the construction costing of two types of wood dry kilns, namely, prefabricated aluminum-and masonry kilns with normal operation temperature was studied. for this purpose, the construction, dep...

We provide a broad characterization of the supply chain settings in which perfect coordination can be achieved with a simple wholesale pricing scheme based on constant unit wholesale prices or a single quantity discount scheme. We confine ourselves to two-echelon chains with a single supplier servicing a network of retailers who compete with each other by selecting retail prices (Bertrand compe...

This paper analyzes a series inventory system with stationary costs and stochastic demand over an infinite horizon. A distinctive feature is that demand can be negative, representing returns from customers, as well as zero or positive. We observe that, as in a system with nonnegative demand, a stationary echelon base-stock policy is optimal here. However, the steadystate behavior of the system ...

This paper extends Frank’s (2006) very simple model to analyze the welfare effects of appreciation and depreciation in a world with borrowing, property taxes, and moving costs. It is shown that appreciation can make homeowners worse off but that even when there is a property tax depreciation can not make homeowners who intend to stay in their house worse off. Our model provides a simple framewo...

labored under the historic burden of its essential mission being that of carrying out the work of God, a mission for which material reward was deemed unimportant. A second, and lower, minimum wage existed for employed hospital workers, and many institutions were peopled by nuns and others paid far less than the prevailing wage elsewhere. Juxtaposed with this otherworldly view, the hospital was ...

We present a two-echelon dual-channel inventory model in which stocks are kept in both a manufacturer warehouse (upper echelon) and a retail store (lower echelon), and the product is available in two supply channels: a traditional retail store and an Internet-enabled direct channel. The system receives stochastic demand from two customer segments: those who prefer the traditional retail store a...

How do different exporters react to exchange rate changes? Theory, empirics and aggregate implications This paper analyzes the reaction of exporters to exchange rate changes. We present a model where, in the presence of distribution costs in the export market, high and low productivity firms react differently to a depreciation . Whereas high productivity firms optimally raise their markup rathe...

In this research, the optimal pricing decisions for two complementary products in a two-echelon supply chain under two scenarios are studied. The proposed supply chain in each echelon includes one retailer and two manufacturers and the same complementary products are produced. In the first scenario, we assume the unit manufacturing costs of the complementary products in each echelon are the sam...

in this paper, a supplier-retailer transportation system is investigated as a two-echelon environment. there is a single location in each echelon; the unique supplier at the first echelon has to replenish the retailer's warehouse at the second echelon. by the way, the shortage situation should be avoided. for this situation, a model is provided based on the traditional eoq model. the inven...