In this paper, we examine the nature of optimal inventory policies in a system where a retailer manages substitutable products. We first consider a system with two products 1 and 2 whose total demand is D and individual demand proportions are p and (1-p). A fixed proportion of the unsatisfied customers for 1(2) will purchase item 2 (1), if it is available in inventory. For the single period cas...

We consider a multi-component, multi-product, periodic-review (re)assemble-to-order (RATO) system that uses an independent base-stock policy for the inventory replenishment of the components. At the beginning of each period, end-of-lease cores are returned. Because the quality of cores is random, they are tested, graded, and sorted into four pre-specified quality levels. Then, the random, joint...

We solve an agent’s optimization problem of meeting demands for cash over time with cash deposited in bank or invested in stock. The stock pays dividends and uncertain capital gains, and a commission is incurred in buying and selling of stock. We use a stochastic maximum principle to obtain explicitly the optimal transaction policy.

This paper deals with the coordination of manufacturing, remanufacturing and returns acceptance control in a hybrid production-inventory system. We use a queuing control framework, where manufacturing and remanufacturing are modelled by single servers with exponentially distributed processing times. Customer demand and returned products arrive in the system according to independent Poisson proc...

We consider a one-warehouse, N-identical-retailer model. Random demands occur at the retailers with complete backlogging. The retailers replenish their inventories from the warehouse, which in turn orders from an outside supplier with unlimited stock. Each retailer places an order every N periods according to a base-stock policy, and the reorder intervals of the retailers are staggered so that ...

The cost of executive stock options to shareholders has become a focus of attention in ̄nance and accounting. The di±culty is that the value of these options depends on the exercise policies of the executives. Because these options are nontransferable, the usual theory does not apply. We analyze the optimal exercise policy for a utility-maximizing executive and indicate when the policy is chara...

This article provides an in-depth analysis of the role and significance dividend policy in financial management system joint-stock companies, describes theory calculating dividends, approaches to formation basic principles policy.

A recent literature has documented large real effects of trade policy uncertainty (TPU) on trade, employment, and investment, but there is little evidence that investors are compensated for bearing such risk. To quantify the risk premium associated with TPU, we exploit quasi-experimental variation in exposure to TPU arising from Congressional votes revoke China’s preferential tariff treatment b...