This study presents a stochastic demand multi-product supplier selection model with service level and budget constraints using Genetic Algorithm. Recently, much attention has been given to stochastic demand due to uncertainty in the real world. Conflicting objectives also exist between profit, service level and resource utilization. In this study, the relationship between the expected profit an...

This paper illustrates how a generator profit may be affected by the pricing method of an oligopoly market model. Through utilizing a bilevel optimization technique and game theory concepts, Supply Function Equilibria (SFE) of pay-as-bid pricing (PABP) and marginal pricing (MP) mechanisms are derived. Theoretically, it is demonstrated that in the presence of strategic interaction, the generator...

The assumption of expected profit-maximizing bidding behavior in a multi-unit, multi-period auction with step-function supply curves is used to estimate cost functions for electricity generation units and derive tests of expected profit-maximizing behavior. Applying these techniques to data from the National Electricity Market in Australia reveals statistically significant evidence of output-de...

In this paper, we study the optimal order quantity decisions for a risk-averse newsvendor with a backorder case, where it is assumed that all or part of the excess demands of the customers can be backlogged. The optimal decisions are obtained under the popular Conditional Value-at-Risk (CVaR) criterion, which is to control the risk of the profit due to uncertain market demands. We study two bas...

We introduce and study the range contract, which allows a buyer to procure from a supplier at a prescribed price any amountwithin a specified range. In return, the supplier is compensated up front for thewidth of the rangewith a range fee. This fee canbe viewed as the buyer tradingmonetary value for reduceduncertainty. The range contract generalizes and unifiesmany common contracts, such as fix...

In this work we use ROC (Receiver Operating Characteristic) analysis to evaluate customer subgroups detected by different machine learning approaches in a marketing database. A direct mailing model with a marginal cost per mailing and an average expected profit per new customer has been assumed. In order to identify optimal mailing strategies for different marketing situations, we introduce the...

The purpose of this study was to examine the expected returns of Carhart model compared to the capital asset pricing model and the implicit capital cost model based on cash and capital returns of growth and value stocks. The statistical population consisted of the companies listed in Tehran Stock Exchange and the time domain is between 2007 and 2016. By choosing Cochran sampling, 126 companies ...

We study the problem of selling a resource through an auction mechanism. The winning buyer in turn develops this resource to generate profit. Two forms of payment are considered: charging the winning buyer a one-time payment, or an initial payment plus a profit sharing contract (PSC). We consider a symmetric interdependent values model with risk averse or risk neutral buyers and a risk neutral ...

This paper presents an investigation into generalized Bayesian analysis of warranty contracts, using sets of prior distributions within the theory of imprecise probability. Explicit expressions are derived for optimal lower and upper bounds for the expected profit for the manufacturer of a product, corresponding to an imprecise negative binomial model for which two sets of prior distributions a...