Should a monopolistic vendor adopt the selling model or the leasing model for information goods or services? We study this question in the context of consumer valuation depreciation. Using a two-period game-theoretic model, we consider two types of consumer-side valuation depreciation for information goods or services: vintage depreciation and individual depreciation. Vintage depreciation assum...

This study aims to find out whether the Super Village Unit Cooperative is able cover depreciation costs on use of fixed assets and by using operating leverage analysis cooperative generate profits.To test hypothesis taken, analytical tool used degree (DOL) analysis.The results show that cooperatives have not been achieve a level efficiency, because resulting shows an increase in first two years...

Inventory carrying costs represent a considerable portion of business logistics costs for manufacturing, and include the costs of interest, taxes, obsolescence, depreciation, insurance, and warehousing. Using an automated supply chain management system, these business logistics costs, particularly the inventory carrying costs and the logistics administration costs, can be reduced. The MIDAS sys...

In this paper we investigate how firms adjust markups across products in response to fluctuations in the real exchange rate. In a theoretical framework, we show that firms increase their markups and producer prices following a real depreciation and that this increase is greater for products with higher productivity, a consequence of local distribution costs. We estimate markups at the market-pr...

Nowadays, in highly competitive global markets and constant pressure to reduce total costs, enterprises consider group technology and Supply Chain Management (SCM) accordingly and usually separately as the key elements for intra and inter facilities improvement. Simultaneous consideration of the elements of these two disciplines in an integrated design can result in higher efficiency and ...

Customers and downstream supply chain partners often place, or can be induced to place, orders in advance of future requirements. We show how to optimally incorporate advance demand information into periodic-review, multiechelon, inventory systems in series. While the state space for series systems appears to be formidably large, we decompose the problem across locations, as in Clark and Scarf ...

Nowadays, offering extended warranty is considered as a lucrative source of income from the perspective of the after-sale service providers. Meanwhile, the main concern is presence or absence of base warranty and strategies adopted by the manufacturer during this period. Moreover, extended warranty structure must be responsive and customer oriented, which not only control the services cost but ...

The paper addresses the issue of stability for re-entrant flow lines, producing multiple products, with capacitated machines, random demand and random yield. The policies of interest are multi-echelon base stock policies, combined with a set of static and dynamic management rules of the available capacity. We introduce three classes of capacitated echelon base stock policies: Π0, the pure multi...

This paper considers a multistage serial inventory system with Markov-modulated demand. Random demand arises at Stage 1, Stage 1 orders from Stage 2, etc., and Stage N orders from an outside supplier with unlimited stock. The demand distribution in each period is determined by the current state of an exogenous Markov chain. Excess demand is backlogged. Linear holding costs are incurred at every...

We consider a multi-product serial two echelon inventory system with stochastic demand. Inventories at the downstream location are replenished periodically using an automatic ordering system. Under vendor managed inventory strategies the upstream stage is allowed to adapt these orders in order to benefit from economies of scale. We propose three different VMI strategies, aiming to reduce the or...