In contrast to the existing literature on repeated games that assumes a Þxed discount factor, I study an environment in which it is more realistic to assume a ßuctuating discount factor. In a repeated oligopoly, as the interest rate changes, so too does the degree to which Þrms discount the future. I characterize the optimal tacit collusion equilibrium when the discount factor changes over time...

Many extension of the newsboy problem have been solved in the literature. One of those extensions solves a newsboy problem with stochastic initial inventory, earlier extensions have focused on quantity discounts offered by suppliers. An important practical extension would address a combination of the two pervious extensions. In this paper we consider a newsboy problem in which the suppliers off...

This paper considered a single-item, three-echelon (supplier, retailer, and customer) inventory problem. At random times, the supplier offers the retailer a discount. The inter-arrival times of discounts are exponentially distributed. For the retailer, whether or not to take a discount offer depends on its inventory level. If inventory is below threshold level S, the retailer will order to repl...

The single-vendor single-buyer integrated production inventory system has been an object of study for a long time, but little is known about the effect of investing in reducing ordering cost on the integrated inventory models with backorder price discount and variable lead time. The purpose of this article is to investigate in the continuous review model with backorder price discount and variab...

An all-units discount is a price reduction applied to all units purchased if the customer’s total purchases equal or exceed a given quantity threshold. Since the discount is paid on all units rather than marginal units, the tariff is discontinuous and exhibits a negative marginal price (“cliff”) at the threshold that triggers the discount. This paper shows that all-units discounts arise in opti...

In this paper we analyze a supply contract for a single product that speci®es that the cumulative orders placed by a buyer, over a ®nite horizon, be at least as large as a (contracted upon) given quantity. We assume that the demand for the product is uncertain, and the buyer places orders periodically. We derive the optimal purchase policy for the buyer for a given total minimum quantity commit...

This study uses a hedonic property price function to estimate the effects of flood hazards on residential property values. The study utilizes data from over 8,000 single-family residential home sales in Pitt County, North Carolina between 1992 and 2002. This area experienced significant flooding from Hurricane Floyd in September 1999. Results show that a house located within a floodplain has a ...

In the supply chain management, the supplier can reduce its total cost by providing price discounts to restrict the retailers’ replenishment intervals to multiples of a common replenishment interval. In order to accomplish this purpose, supplier often determined a price discount that all the retailers can accept. After the cost of the supplier was further considered, a better price discount was...