The paper considers a bidirectional power flow model of the electric vehicles (EVs) in a charging station. The EVs can inject energies by discharging via a Vehicle-to-Grid (V2G) service which can enhance the profits of the charging station. However, frequent charging and discharging degrade battery life. A proper compensation needs to be paid to the users to participate in the V2G service. We p...

The paper considers a stylized model of a dynamic assortment optimization problem, where given a limited capacity constraint, we must decide the assortment of products to offer to customers to maximize the profit. Our model is motivated by the problem faced by retailers of stocking products on a shelf with limited capacities and by the problem of placing a limited number of ads on a web page. W...

Wind Power Producers (WPPs) seek to maximize profit and minimize the imbalance costs when bidding into the day-ahead market, but uncertainties in the hourly available wind and forecasting errors make the bidding risky. This paper assumes that hourly wind power output given by the forecast follows a normal distribution, and proposes three different bidding strategies, i.e., the expected profit-m...

We study the bidding behavior of spiteful agents who, contrary to the common assumption of selfinterest, maximize the weighted difference of their own profit and their competitors’ profit. This assumption is motivated by inherent spitefulness, or, for example, by competitive scenarios such as in closed markets where the loss of a competitor will likely result in future gains for oneself. We der...

This article deals with an economic order quantity (EOQ) inventory model for items with imperfect quality in fuzzy stochastic environment, wherein shortages are allowed and completely backlogged. Fuzzy stochastic environment means linguistic ‘impreciseness’ and statistical ‘uncertainty’ both appear simultaneously. Due to uncertain demand trend, imperfect production process, natural disaster etc...

In the smart grid, large consumers can procure electricity energy from various power sources to meet their load demands. To maximize its profit, each large consumer needs to decide their energy procurement strategy under risks such as price fluctuations from the spot market and power quality issues. In this paper, an electric energy procurement decision-making model is studied for large consume...

D the payment scheme have an effect on inventory decisions in the newsvendor problem? Keeping the net profit structure constant, we examine three payment schemes that can be interpreted as the newsvendor’s order being financed by the newsvendor herself (scheme O), by the supplier through delayed order payment (scheme S), and by the customer through advanced revenue (scheme C). In a laboratory s...

The forest-harvesting and road-construction planning problem basically consists of managing land designated for timber production and divided into harvest cells. For each time period in the given time horizon one must decide which cells to cut and what access roads to build in order to maximize expected net profit under a risk manageable scheme to control the negative impact of the solutions in...

This paper investigates the optimal length of lease period and maintenance policy for leased equipment. In order to have steady revenue, the lessor (owner) of equipment may provide a discount to encourage the lessee (user) to sign a contract with a longer lease period. However, as the lease period increases, the maintenance cost also increases due to the deterioration or usage of the equipment....

A manufacturer must choose to delegate component procurement to its tier-1 supplier, or to control component procurement by contracting with both the tier-1 supplier and the tier-2 component supplier. Both suppliers have private cost information and the manufacturer has an alternative source of supply with cost known to all parties. This paper proves that if the firms may use arbitrarily comple...