Synchronizing pricing and replenishment to serve forward-looking customers

We incorporate strategic customer waiting behavior in the classical economic order quantity (EOQ) setting. The seller determines not only the timing and quantities of the inventory replenishment, but also the selling prices over time. While similar ideas of market segmentation and intertemporal price discrimination can be carried over from the travel industries to other industries, inventory replenishment considerations common to retail outlets and supermarkets introduce additional features to the optimal pricing scheme. Specifically, our study provides concrete managerial recommendations that are against the conventional wisdom on “everyday low price” (EDLP) versus “high-low pricing” (Hi-Lo). We show that in the presence of inventory costs and strategic customers, Hi-Lo instead of EDLP is optimal when customers have homogeneous valuations. This result suggests that because of strategic customer behavior, the seller obtains a new source of flexibility—the ability to induce customers to wait—which always leads to a strictly positive increase of the seller's profit. Moreover, the optimal inventory policy may feature a dry period with zero inventory, but this period does not necessarily result in a loss of sales as customers strategically wait for the upcoming promotion. Furthermore, we derive the solution approach for the optimal policy under heterogeneous customer valuation setting. Under the optimal policy, the replenishments and price promotions are synchronized, and the seller adopts high selling prices when the inventory level is low and plans a discontinuous price discount at the replenishment point when inventory is the highest.     

Beyond balancing? Intrastate conflict and US grand strategy

Grand strategic theorists share an historical emphasis on interstate conflict, yet in contrast to the more frequent intrastate conflicts, these represent only 7 of the some 273 US military deployments since 1900. We argue that these intrastate conflicts limit the utility of regional balances of power in mitigating forms of conflict that the US may consider inimical to its national security interests. When considering potential changes to US force posture and grand strategy, American coercive statecraft should be theorised along a broader strategic continuum encompassing the full range of conflict.     

The Regional Economic Effects of Military Base Realignments and Closures

This paper empirically investigates the impact of military base realignments and closures on regional economic activity in light of the 2005 round of Base Realignment and Closure actions. Baseline regressions with county-level data show employment multipliers comparable to those generated from conventional input–output models. However, controlling for possible endogeneity and other regional-specific factors, regressions indicate more tenuous results for spillover effects from the military to the private sector. Only the contractor type of base employment generated economically and statistically meaningful impacts on local employment. In addition, there is strong evidence of asymmetric effects between military buildups and drawdowns.     

Brazilian National Defence Policy: foreign policy,national security,economic growth,and technological innovation

ABSTRACT

With the world’s ninth largest economy and comprising nearly 60% of South America’s GDP, 47% of its territory, and 49% of its population, Brazil has become a regional power and an important actor in world affairs over recent decades. This scenario has led the government to re-evaluate its role in the world order, resulting in the enactment of the National Defence Policy, whose objective was to consolidate the country as a regional power while at the same time addressing national security issues, promoting economic development through a series of defence programmes, restructuring the defence industrial base, fostering innovation through technology and knowledge transfer to Brazil, and indigenous research and development. However, the policy’s implementation suffers from several challenges discussed in this article, which may test the capability and competence of Brazilian policymakers, military, industrialists, and other individuals and organisations involved in its implementation.     

South African defence policy: the rationale and impact of the SANDF’s primary role and conventional force design

The 2015 South African Defence Review set out to reverse the deterioration of South African National Defence Force (SANDF) capabilities. Within the South African Department of Defence (DOD) this deterioration is expressed mainly in terms of a decreasing defence budget, subsequent declining conventional capabilities and obsolete prime mission equipment. Contemporary research and defence expert debates on this theme, point out the disjuncture between policy ends and the available means, with scepticism for an increased defence budget given the DOD’s lack of internal reform and strategy adjustment. One question that remains largely unanswered in the literature regarding the decline of the SANDF, is why both the policy-makers and the SANDF have remained focused on the primary role of the military (defending territorial integrity) accompanied with an unaffordable conventional force design? This question relates to the aim of this paper and is explored by revisiting initial defence policy decisions and compromises that were made in the 1990s. It is argued that the primary role of the SANDF and its conventional force design suited the interests of both the politicians and the military, but that the drawbacks thereof have harshly caught up with the DOD.     

新时代与公共政策的创新

公共政策,既是时代的产物,又为时代服务。新时代要求公共政策的创新必须更加聚焦,一切以调动广大人民群众的积极性,增强民族的凝聚力、创造力为出发点;要求公共政策的创新以人民为中心,一切以人民是否满意,是否具有获得感、幸福感、安全感、自豪感为落脚点;要求公共政策的创新,应当以社会问题为重点,以推动解决主要矛盾、化解社会各领域的主要问题为根本要求;要求公共政策的研究应当提高定位、开阔视野,跟上时代步伐,多出系统性、前瞻性研究成果和高质量研究人才,为党和国家的科学决策贡献更多的智慧力量。     

When to commit in a serial supply chain with forecast updating

Negotiations between an end product manufacturer and a parts supplier often revolve around two main issues: the supplier's price and the length of time the manufacturer is contractually held to its order quantity, commonly termed the “commitment time frame.” Because actual demand is unknown, the specification of the commitment time frame determines how the demand risk is shared among the members of the supply chain. Casual observation indicates that most manufacturers prefer to delay commitments as long as possible while suppliers prefer early commitments. In this paper, we investigate whether these goals are always in the firm's best interest. In particular, we find that the manufacturer may sometimes be better off with a contract that requires an early commitment to its order quantity, before the supplier commits resources and the supplier may sometimes be better off with a delayed commitment. We also find that the preferred commitment time frame depends upon which member of the supply chain has the power to set their exchange price. © 2003 Wiley Periodicals, Inc. Naval Research Logistics, 2003     

地缘政治危机与晚清政府边防政策的三次调整

摘要：鸦片战争后,中国边疆危机纷至沓来。晚清政府在不到30年的时间里,三次调整边防策略,相继形成了“郅治保邦”、“海防与塞防并重”和“保藩固圉”的边防政策,这在一定程度上遏制了帝国主义的兵锋战火。但又造成了“和”不能争主权、“战”不能取胜利的被动局面,加剧了清政府的民族危机、边防危机和统治危机。     

Competition under time‐varying demands and dynamic lot sizing costs

We develop a competitive pricing model which combines the complexity of time‐varying demand and cost functions and that of scale economies arising from dynamic lot sizing costs. Each firm can replenish inventory in each of the T periods into which the planning horizon is partitioned. Fixed as well as variable procurement costs are incurred for each procurement order, along with inventory carrying costs. Each firm adopts, at the beginning of the planning horizon, a (single) price to be employed throughout the horizon. On the basis of each period's system of demand equations, these prices determine a time series of demands for each firm, which needs to service them with an optimal corresponding dynamic lot sizing plan. We establish the existence of a price equilibrium and associated optimal dynamic lotsizing plans, under mild conditions. We also design efficient procedures to compute the equilibrium prices and dynamic lotsizing plans.© 2008 Wiley Periodicals, Inc. Naval Research Logistics 2009     

Locational tying of complementary retail items

We study a selling practice that we refer to as locational tying (LT), which seems to be gaining wide popularity among retailers. Under this strategy, a retailer “locationally ties” two complementary items that we denote by “primary” and “secondary.” The retailer sells the primary item in an appropriate “department” of his or her store. To stimulate demand, the secondary item is offered in the primary item's department, where it is displayed in very close proximity to the primary item. We consider two variations of LT: In the multilocation tying strategy (LT‐M), the secondary item is offered in its appropriate department in addition to the primary item's department, whereas in the single‐location tying strategy (LT‐S), it is offered only in the primary item's location. We compare these LT strategies to the traditional independent components (IC) strategy, in which the two items are sold independently (each in its own department), but the pricing/inventory decisions can be centralized (IC‐C) or decentralized (IC‐D). Assuming ample inventory, we compare and provide a ranking of the optimal prices of the four strategies. The main insight from this comparison is that relative to IC‐D, LT decreases the price of the primary item and adjusts the price of the secondary item up or down depending on its popularity in the primary item's department. We also perform a comparative statics analysis on the effect of demand and cost parameters on the optimal prices of various strategies, and identify the conditions that favor one strategy over others in terms of profitability. Then we study inventory decisions in LT under exogenous pricing by developing a model that accounts for the effect of the primary item's stock‐outs on the secondary item's demand. We find that, relative to IC‐D, LT increases the inventory level of the primary item. We also link the profitability of different strategies to the trade‐off between the increase in demand volume of the secondary item as a result of LT and the potential increase in inventory costs due to decentralizing the inventory of the secondary item. © 2009 Wiley Periodicals, Inc. Naval Research Logistics 2009