W e analyze a model that integrates demand shaping via dynamic pricing and risk mitigation via supply diversification. The firm under consideration replenishes a certain product from a set of capacitated suppliers for a pricedependent demand in each period. Under deterministic capacities, we derive a multilevel base stock list price policy and establish the optimality of cost-based supplier sel...

Many information resource managers have learned to be proactive in today’s highly competitive business environment. However, limited financial resources and many uncertainties require them to maximize their shareholders’ equity while controlling the risks incurred at an acceptable level. As the unprecedented development in information technology continuously produces great opportunities that ar...

In this article, we extend Cheng, Zhang and Wang [17] model studied pricing strategies in marketing. The objective is to find the optimal inventory and pricing strategies maximizing the net present value of total profit over the infinite horizon. It is important to control and maintain the inventories of deteriorating items for the modern corporation. We will discuss two models: one is without ...

This paper investigates a technique for developing investment assumptions for pricing that are consistent with the investment practices of the company. An investment strategy is defined to be a specific allocation of investable funds among given representative fixed-income instruments. The investment strategy problem consists of two parts: how to invest funds initially received on a block of ne...

In many industrial settings, managers face the problem of establishing a pricing policy that maximizes the revenue from selling a given inventory of items by a fixed deadline, with the full inventory of items being available for sale from the beginning of the selling period. The items unsold by the deadline have a constant salvage value, which we assume to be zero for simplicity. Pricing must b...

We use time-consistent coherent and Markov risk measure to study a risk-averse firm’s inventory and price control activities. Our dynamic programming model leads to optimal policy structures that are reminiscent of their risk-neutral counterparts. However, with risk aversion there emerge new patterns. First, monotone properties are derivable for the pricing policy when the convex risk set assoc...

We study an inventory system that supplies price-sensitive demand modeled by Brownian motion. The optimal pricing and inventory replenishment decisions under both long-run average and discounted objectives are derived, and related to or contrasted with previously known results. In addition, we emphasize the interplay between pricing and replenishment decisions, and the ways in which they react ...

We develop a DSGE model to explain salient empirical regularities regarding fluctuations in aggregate inventory accumulation over the business cycle while simultaneously explaining a distinct set of observations on the behavior of this series at higher frequencies. We begin with a generalized (S,s) model of inventory investment wherein firms fixed costs of ordering inputs that lead them to econ...

Integrating multiple services into a single network is becoming increasingly common in today's telecommunications industry. Driven by the emergence of new applications, many of these services will be offered with guaranteed quality of service. While there are extensive studies of the engineering problems of designing integrated-services networks with guaranteed quality of service, related econo...