Multi‐item capacitated lot‐sizing problems with setup times and pricing decisions

We study a multi‐item capacitated lot‐sizing problem with setup times and pricing (CLSTP) over a finite and discrete planning horizon. In this class of problems, the demand for each independent item in each time period is affected by pricing decisions. The corresponding demands are then satisfied through production in a single capacitated facility or from inventory, and the goal is to set prices and determine a production plan that maximizes total profit. In contrast with many traditional lot‐sizing problems with fixed demands, we cannot, without loss of generality, restrict ourselves to instances without initial inventories, which greatly complicates the analysis of the CLSTP. We develop two alternative Dantzig–Wolfe decomposition formulations of the problem, and propose to solve their relaxations using column generation and the overall problem using branch‐and‐price. The associated pricing problem is studied under both dynamic and static pricing strategies. Through a computational study, we analyze both the efficacy of our algorithms and the benefits of allowing item prices to vary over time. © 2009 Wiley Periodicals, Inc. Naval Research Logistics, 2010     

Coordination of pricing and inventory control across products

We consider the joint pricing and inventory‐control problem for a retailer who orders, stocks, and sells two products. Cross‐price effects exist between the two products, which means that the demand of each product depends on the prices of both products. We derive the optimal pricing and inventory‐control policy and show that this policy differs from the base‐stock list‐price policy, which is optimal for the one‐product problem. We find that the retailer can significantly improve profits by managing the two products jointly as opposed to independently, especially when the cross‐price demand elasticity is high. We also find that the retailer can considerably improve profits by using dynamic pricing as opposed to static pricing, especially when the demand is nonstationary. © 2009 Wiley Periodicals, Inc. Naval Research Logistics, 2009     

基于更新过程的多阶段备件需求模型

正态分布、威布尔分布是常用的备件寿命模型,但是正态分布和威布尔分布的记忆性会导致多阶段需求量预测的相关性.利用更新过程理论,将叠加的更新过程分解和拼接,建立单阶段多项备件需求模型;通过将年龄转移到下个阶段,建立了多阶段不可修备件需求模型;采用加权平均法对多阶段需求模型进行了修正.仿真表明,这种模型能有效预测多阶段需求的波动.     

装备备件管理技术综述

备件管理水平的高低直接影响着装备保障能力的发挥和使用保障费用的维持,备件管理现已成为世界范围内的研究热点。通过对国内外有关备件管理文献的分析,总结了备件管理在备件分类方法、需求预测与确定、库存控制与优化3个方面的研究现状。分析结果表明：备件管理将向多因素综合考虑的备件分类方法,基于备件需求不确定性的预测技术以及基于计算机辅助技术、物流和供应链管理等方向发展。     

Note on “An Optimal Recursive Method for Various Inventory Replenishment Models with Increasing Demand and Shortages” by Teng et al.

In a recent paper, Teng, Chern, and Yang consider four possible inventory replenishment models and determine the optimal replenishment policies for them. They compare these models to identify the best alternative on the basis of minimum total relevant inventory costs. The total cost functions for Model 1 and Model 4 as derived by them are not exact for the comparison. As a result, their conclusion on the least expensive replenishment policy is incorrect. The present article provides the actual total costs for Model 1 and Model 4 to make a correct comparison of the four models. © 2000 John Wiley & Sons, Inc. Naval Research Logistics 47: 602–606, 2000     

Inventory transshipment game with limited supply: Trap or treat

Inventory transshipment is generally shown to be beneficial to retailers by matching their excess demand with surplus inventory. We investigate an inventory transshipment game with two newsvendor-type retailers under limited total supply and check whether the retailers are better off than the case without transshipment. We derive the ordering strategies for the retailers and show that unlike the unlimited supply case, a pure Nash equilibrium only exists under certain conditions. Furthermore, contrary to the conventional wisdom, we show that inventory transshipment may not always benefit both retailers. Although one of the retailers is guaranteed to be better off, the other could be worse off. The decision criteria are then provided for the retailers to determine if they will benefit from the exercise of inventory transshipment. Numerical study indicates that the carefully chosen transshipment prices play an important role in keeping inventory transshipment beneficial to both retailers. Subsequently, a coordinating mechanism is designed for the retailers to negotiate transshipment prices that maximize the total profit of the two retailers while keeping each of them in a beneficial position.     

Pricing and capacity allocation strategies: Implications for manufacturers with product sharing

Emerging sharing modes, like the consumer-to-consumer (C2C) sharing of Uber and the business-to-consumer (B2C) sharing of GoFun, have considerably affected the retailing markets of traditional manufacturers, who are motivated to consider product sharing when making pricing and capacity decisions, particularly electric car manufacturers with limited capacity. In this paper, we examine the equilibrium pricing for a capacity-constrained manufacturer under various sharing modes and further analyze the impact of capacity constraint on the manufacturer's sharing mode selection as well as equilibrium outcomes. We find that manufacturers with low-cost products prefer B2C sharing while those with high-cost products prefer C2C sharing except when the sharing price is moderate. However, limited capacity motivates manufacturers to enter into the B2C sharing under a relatively low sharing price, and raise the total usage level by sharing high-cost products. We also show that the equilibrium capacity allocated to the sharing market with low-cost products first increases and then decreases. Finally, we find that sharing low-cost products with a high limited capacity leads to a lower retail price under B2C sharing, which creates a win-win situation for both the manufacturer and consumers. However, sharing high-cost products with a low limited capacity creates a win-lose situation for them.     

NATO BENEFITS,BURDENS AND BORDERS: REPLY

This note implements the sensitivity analysis suggested by Sandler and re‐examines the robustness of the concordance between NATO benefits and burdens.     

NATO BENEFITS,BURDENS AND BORDERS: COMMENT

This note refutes criticism raised by Solomon about past tests used to ascertain the concordance between NATO benefits and burdens. In so doing, a case is made for keeping the benefit proxy based on exposed borders. Moreover, a truer sensitivity analysis than that offered by Solomon is suggested.     

How not to pay for the war

As a result of allied subsidy and the influence of sunk costs, the marginal cost of the Gulf War to the US was reduced to negligible size. This result is at variance with the Olson‐Zeckhauser thesis that in an alliance “the small exploit the large.” A game theoretic alternative explanation suggests that the relation between allies resembles the game of Chicken, successfully played by the US. The ability to shift the marginal costs of war in the short term raises questions about the possible underestimation of long term effects.